In each of the following independent cases for tax year 2020, determine the amount of business interest expense deduction and disallowed interest expense carryforward, if any. Required: a. Company A has ATI of $83,000 and business interest expense of $23,250. b. Company B has ATI of $109,500, business interest expense of $59,750, and business interest income of $3,300. c. Company C has taxable income of $60,400 which includes business interest expense of $96,500 and depreciation of $26,500.

In each of the following independent cases for tax year 2020, determine the amount of business interest expense deduction and disallowed interest expense carryforward, if any. Required: a. Company A has ATI of $83,000 and business interest expense of $23,250. b. Company B has ATI of $109,500, business interest expense of $59,750, and business interest income of $3,300. c. Company C has taxable income of $60,400 which includes business interest expense of $96,500 and depreciation of $26,500.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 56P

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