Required information

Problem $1-56($LO $1-2)($Static$)$

$[$The following information applies to the questions displayed below.$]$

Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business reported revenue of $\backslash$$$95\mathrm{.}5$ million and deducted $\backslash (\backslash$$ $88\mathrm{.}6\backslash )$ million in expenses and loss carryovers. Her business deductions included cost of goods sold of $\backslash (\backslash$$ $48\mathrm{.}5\backslash )$ million, sales commissions paid of $\backslash (\backslash$$ $16\mathrm{.}9\backslash )$ million, $\backslash (\backslash$$ $10\mathrm{.}5\backslash )$ million of interest paid on a mortgage, $\backslash (\backslash$$ $10\mathrm{.}7\backslash )$ million of depreciation, and $\backslash (\backslash$$ $2\backslash )$ million deduction for a net operating loss carryover.

Problem $1-56$ Part$-$a $($Static$)$

a$.$ What is Renee's adjusted taxable income for purposes of calculating the limitation on business interest expense?

Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to $1$ decimal place. Required information

Problem $1-56($LO $1-2)($Static$)$

$[$The following information applies to the questions displayed below.$]$

Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business reported revenue of $\backslash$$$95\mathrm{.}5$ million and deducted $\backslash (\backslash$$ $88\mathrm{.}6\backslash )$ million in expenses and loss carryovers. Her business deductions included cost of goods sold of $\backslash (\backslash$$ $48\mathrm{.}5\backslash )$ million, sales commissions paid of $\backslash (\backslash$$ $16\mathrm{.}9\backslash )$ million, $\backslash (\backslash$$ $10\mathrm{.}5\backslash )$ million of interest paid on a mortgage, $\backslash (\backslash$$ $10\mathrm{.}7\backslash )$ million of depreciation, and $\backslash (\backslash$$ $2\backslash )$ million deduction for a net operating loss carryover.

Problem $1-56$ Part$-$b $($Static$)$

Required:

b$-1.$ What is the maximum amount of business interest expense that Renee can deduct this year?

b$-2.$ How is the disallowed interest expense $($if any$)$ treated? Interest disallowed would be:

Complete this question by entering your answers in the tabs below.

What is the maximum amount of business interest expense that Renee can deduct this year?

Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to $2$ decimal places. Problem $1-56($LO $1-2)($Static$)$

$[$The following information applies to the questions displayed below.$]$

Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business reported revenue of $\backslash$$$95\mathrm{.}5$ million and deducted $\backslash (\backslash$$ $88\mathrm{.}6\backslash )$ million in expenses and loss carryovers. Her business deductions included cost of goods sold of $\backslash (\backslash$$ $48\mathrm{.}5\backslash )$ million, sales commissions paid of $\backslash (\backslash$$ $16\mathrm{.}9\backslash )$ million, $\backslash (\backslash$$ $10\mathrm{.}5\backslash )$ million of interest paid on a mortgage, $\backslash (\backslash$$ $10\mathrm{.}7\backslash )$ million of depreciation, and $\backslash (\backslash$$ $2\backslash )$ million deduction for a net operating loss carryover.

Problem $1-56$ Part$-$c $($Static$)$

c$.$ Suppose that Renee's revenue includes $\backslash (\backslash$$ $5\backslash )$ million of business interest income. What is the maximum amount of business interest expense that could be deducted this year under the business interest limitation$?$

Note: Do not round intermediate calculations. Enter your answer in millions of dollars rounded to $\backslash (\backslash$mathbf$\{2\}\backslash )$ decimal places.