For 2022, MSU Corporation has $500,000 of adjusted taxable income, $22,000 of business interest income, and $120,000 of business interest expense. It has average annual gross receipts of more than $27,000,000 over the prior three taxable years. a.  What is MSU's interest expense deduction for 2022? b.  How much interest expense can be deducted for 2022 if MSU's adjusted taxable income is $300,000

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 56P
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For 2022, MSU Corporation has $500,000 of adjusted taxable income, $22,000 of business interest income, and $120,000 of business interest expense. It has average annual gross receipts of more than $27,000,000 over the prior three taxable years.

a.  What is MSU's interest expense deduction for 2022?

b.  How much interest expense can be deducted for 2022 if MSU's adjusted taxable income is $300,000?

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