Which of the Following Is a True Statement About the Limitation

question 54

Multiple Choice

Which of the following is a true statement about the limitation on business interest deductions?

• A)Interest disallowed by this limitation is carried back three years and then forward five years.
• B)The limitation is calculated as a percentage of the taxpayer's total taxable income.
• C)This limitation is not imposed on businesses with average annual gross receipts of $26 million or less for the prior three taxable years.
• D)All of the choices are false.
• E)All of the choices are true.

---

Definitions:

Byzantine Formality

A style characteristic of Byzantine art and architecture, marked by a strong sense of order, ceremonial nature, and the use of rich decoration and iconography.

Chivalric Etiquette

A code of conduct associated with medieval knighthood, emphasizing virtues such as bravery, courtesy, honor, and gallantry towards women.

French Gothic

An architectural style originating in 12th-century France, characterized by pointed arches, ribbed vaults, and flying buttresses, influencing the development of Gothic architecture in Europe.

Orvieto Cathedral

A large 14th-century Roman Catholic cathedral located in Orvieto, Italy, noted for its stunning facade and significance in medieval architecture.