In the current year, Nighthawk Corporation, a calendar year C corporation, has $5,980,000 of adjusted taxable...

  

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In the current year, Nighthawk Corporation, a calendar year C corporation, has $5,980,000 of adjusted taxable income and $179,400 of business interest income. Nighthawk has no floor plan financing interest. The business interest expense for the year is $2,392,000. a. Assume that Nighthawk has average gross receipts for the prior three-year period of $30,400,000. Determine Nighthawk's current-year deduction for business interest. $ 1,973,400 b. Assume that Nighthawk has average gross receipts for the prior three-year period of $24,000,000. Determine Nighthawk's current-year deduction for business interest. 2392000 In the current year, Nighthawk Corporation, a calendar year C corporation, has $5,980,000 of adjusted taxable income and $179,400 of business interest income. Nighthawk has no floor plan financing interest. The business interest expense for the year is $2,392,000. a. Assume that Nighthawk has average gross receipts for the prior three-year period of $30,400,000. Determine Nighthawk's current-year deduction for business interest. $ 1,973,400 b. Assume that Nighthawk has average gross receipts for the prior three-year period of $24,000,000. Determine Nighthawk's current-year deduction for business interest. 2392000

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Answer calculate Nighthawk Corporations business interest deduction for both scenarios a Gross Recei... View the full answer