Why is interest expense disallowed if it is incurred to purchase or hold tax-exempt obligations?
Question:
Why is interest expense disallowed if it is incurred to purchase or hold tax-exempt obligations?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (8 reviews)
The interest is disallowed as a deduction because the taxpayer would realize a double tax bene...View the full answer
Answered By
Hassan Imtiaz
The following are details of my Professional Experience. Responsibilities Eight years of demanding teaching experience in the field of finance and business studies at Master’s Level. Completion of the given tasks within given time with quality and efficiency. Marketing professional with practical experience in and solid understanding of a diverse range of management applications, including market analysis, sales and marketing, team building and quality assurance. I have excellent skills to approach deal and sustain corporate clients / customers by demonstrating not only extraordinary communication and interpersonal skills but also high caliber presentation, negotiation and closing skills. Manage and follow up the day-to-day activities. Manage and co-ordinate the inventories. Fulfillment of all the tasks assigned.
The following are details of my Areas of Effectiveness. Finance 1. Corporate Finance 2. Advanced Corporate Finance 3. Management of Financial Institutions 4. International Financial Management 5. Investments 6. Fixed Income 7. Real Estate Investment 8. Entrepreneurial Finance 9. Derivatives 10. Alternative Investments 11. Portfolio Management 12. Financial Statement Analysis And Reporting (US GAAP & IFRS) 13. International Financial Markets 14. Public Finance 15. Personal finance 16. Real estate 17. Financial Planning Quantitative Analysis 1. Time Value Of Money 2. Statistics 3. Probability Distribution 4. Business Statistics 5. Statistical Theory and Methods Economics 1. Principles of Economics 2. Economic Theory 3. Microeconomic Principles 4. Macroeconomic Principles 5. International Monetary Economics 6. Money and Banking 7. Financial Economics 8. Population Economics 9. Behavioral Economics International Business 1. Ethics 2. Business Ethics 3. An introduction to business studies 4. Organization & Management 5. Legal Environment of Business 6. Information Systems in Organizations 7. Operations Management 8. Global Business Policies 9. Industrial Organization 10. Business Strategy 11. Information Management and Technology 12. Company Structure and Organizational Management Accounting & Auditing 1. Financial Accounting 2. Managerial Accounting 3. Accounting for strategy implementation 4. Financial accounting 5. Introduction to bookkeeping and accounting Marketing 1. Marketing Management 2. Professional Development Strategies 3. Business Communications 4. Business planning 5. Commerce & Technology Human resource management 1. General Management 2. Conflict management 3. Leadership 4. Organizational Leadership 5. Supply Chain Management 6. Law 7. Corporate Strategy Creative Writing 1. Analytical Reading & Writing Other Expertise 1. Risk Management 2. Entrepreneurship 3. Management science 4. Organizational behavior 5. Project management 6. Financial Analysis, Research & Companies Valuation 7. And any kind of Excel Queries
4.80+
150+ Reviews
230+ Question Solved
Related Book For
Federal Taxation 2018 Comprehensive
ISBN: 9780134532387
31st Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Question Posted:
Students also viewed these Business questions
-
Why is interest expense ignored when computing return on net operating assets (RNOA)?
-
Why is interest expense said to cost the firm substantially less than the actual expense, while dividends cost it 100 percent of the outlay?
-
Why is interest expense reported as a non-operating expense and not as an operating expense on a multiple-step income statement?
-
Let (x, y) = x 4 2x 2 + y 2 6y. (a) Find the critical points of and use the Second Derivative Test to determine whether they are a local minima or a local maxima. (b) Find the minimum value of ...
-
In the circuit in fig, the switch moves from position 1 to 2 at t =0. Use Laplace transforms to find v (t) for t>0.
-
Imagine yourself as a social media influencer engaged in a startup promotion in which unethical behavior is suddenly discovered. What will be your public version of the facts?
-
What are the key System Elements of an SOIs Mission System?
-
(Multiple Choice) 1. Which of the following statements is correct? a. TCP/IP is the basic protocol that permits communication between Internet sites. b. TCP/IP controls Web browsers that access the...
-
3) Convert the following numbers from unsigned base 16 to unsigned base 2 using 1-byte. A) D4 B) 05 C) 65 D) FF
-
Use Worksheet 1 to list three short-term goals and/or expenses for which a savings account, money market mutual fund, or other liquid assets vehicle would be the appropriate place for your money.
-
Explain what a qualified residence is for purposes of qualified residence interest.
-
Since its inception in 1971, Hard Rock has grown from a modest London pub to a global power managing 145 cafes, 21 hotels, 10 casinos, live music venues, and a huge annual Rockfest concert. This puts...
-
Three machines are employed in an isolated area. They each produce 2,000 units of output per month, the first requiring $20,000 in raw materials, the second $25,000, and the third $28,000. What would...
-
Using \(g\) for the acceleration due to gravity is valid as long as the height \(b\) above Earth's surface is small. Derive an expression for a more accurate value of the acceleration due to gravity...
-
Is approximating the gravitational potential energy near the surface of the Sun as \(m g_{s} \Delta x\) accurate over a smaller or larger range of values than approximating the gravitational...
-
In 1865, Jules Verne wrote a story in which three men went to the Moon by means of a shell shot from a large cannon sunk in the ground. (a) What muzzle speed must the cannon have in order for the...
-
What is the magnitude of the gravitational force exerted (a) by the Sun on Mars and (b) by Mars on the Sun? Approximate Mars's orbit as circular.
-
Becky Sherrick Company has total proceeds from sales of $4,515. If the proceeds include sales taxes of 5%, the amount to be credited to Sales Revenue is: a. $4,000. b. $4,300. c. $4,289.25. d. None...
-
What is call risk? What additional features are associated with a bond that is exposed to call risk?
-
Show that if A is any m n matrix, then Im A = A and AIn = A.
-
In which of the following situations will Small Corporation be deemed to be a PHC? Assume that personal holding company income comprises more than 60% of Smalls adjusted ordinary gross income. a. Art...
-
In each of the following four scenarios, determine whether the corporation is a personal holding company. Assume the corporations outstanding stock is owned equally by three individuals. ttem nario 1...
-
Menifee Corporation has conducted business for several years, and its annual gross receipts never have been more than $4 million. Jackie, who has owned all of Menifees stock since she incorporated...
-
You have received an inquiry from a prospective client, Lazy Sofa, Inc., concerning the accounting for investments. Betty Jason, owner of Lazy Sofa, is considering investing some of her companys idle...
-
Firm A invents a new product and obtains a patent for it. It calls the product "Asky". Because of the patent, only Firm A can produce and sell Asky. Firm A plans to sell 1,000 units of Asky at the...
-
You are the Senior Manager of IAuditYou LLP, you were recently assigned to take over a very important client for the company, The engagement partner, Max Roff, has been the audit partner for the past...
Study smarter with the SolutionInn App