George operates a business that generated revenues of $70 million and allocable taxable income of $1.45 million. Included in the computation of allocable taxable income were deductible expenses of $250,000 of business interest and $260,000 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year? Which answer is correct? A. 357,000 B. $588,000 C. $1,710,000 D. $435,000 E. $282,000
George operates a business that generated revenues of $70 million and allocable taxable income of $1.45 million. Included in the computation of allocable taxable income were deductible expenses of $250,000 of business interest and $260,000 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year? Which answer is correct? A. 357,000 B. $588,000 C. $1,710,000 D. $435,000 E. $282,000
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 27CE
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Question
A4
Transcribed Image Text:George operates a business that generated revenues of $70 million and allocable taxable income of $1.45
million. Included in the computation of allocable taxable income were deductible expenses of $250,000 of
business interest and $260,000 of depreciation. What is the maximum business interest deduction that
George will be eligible to claim this year? Which answer is correct?
A. 357,000
B. $588,000
C. $1,710,000
D. $435,000
E. $282,000
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