For 2021, MSU Corporation has $500,000 of adjusted taxable income, $22,000 of business interest income, and $120,000

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For 2021, 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 $26,000,000 over the prior three taxable years.

a. What is MSU’s interest expense deduction?

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

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South-Western Federal Taxation 2022 Individual Income Taxes

ISBN: 9780357519073

45th Edition

Authors: James C. Young, Annette Nellen, William A. Raabe, Mark Persellin, William H. Hoffman

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Question Posted: Jul 07, 2022 12:20 AM

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For 2021, MSU Corporation has $500,000 of adjusted taxable income, $22,000 of business interest income, and $120,000

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South-Western Federal Taxation 2022 Individual Income Taxes

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