Problem 15-58 (LO 15-6) In each of the following independent cases for tax year 2022, determine the amount of business interest expense deduction and disallowed interest expense carryforward, if any. Assume that average annual gross receipts exceed $27 million. Required: a. Company A has ATI of $70,000 and business interest expense of $20,000. b. Company B has ATI of $90,000, business interest expense of $50,000, and business interest income of $2,000. c. Company C has taxable income of $50,000 which includes business interest expense of $90,000 and depreciation of $20,000. Note: For all requirements, leave no cells blank - be certain to enter "0" wherever required. Enter your answers in dollar values not in million of dollars. a. Company A b. Company B c. Company C Interest expense deduction Disallowed interest expense carryforward
Problem 15-58 (LO 15-6) In each of the following independent cases for tax year 2022, determine the amount of business interest expense deduction and disallowed interest expense carryforward, if any. Assume that average annual gross receipts exceed $27 million. Required: a. Company A has ATI of $70,000 and business interest expense of $20,000. b. Company B has ATI of $90,000, business interest expense of $50,000, and business interest income of $2,000. c. Company C has taxable income of $50,000 which includes business interest expense of $90,000 and depreciation of $20,000. Note: For all requirements, leave no cells blank - be certain to enter "0" wherever required. Enter your answers in dollar values not in million of dollars. a. Company A b. Company B c. Company C Interest expense deduction Disallowed interest expense carryforward
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 56P
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Transcribed Image Text:Problem 15-58 (LO 15-6)
In each of the following independent cases for tax year 2022, determine the amount of business interest expense deduction and
disallowed interest expense carryforward, if any. Assume that average annual gross receipts exceed $27 million.
Required:
a. Company A has ATI of $70,000 and business interest expense of $20,000.
b. Company B has ATI of $90,000, business interest expense of $50,000, and business interest income of $2,000.
c. Company C has taxable income of $50,000 which includes business interest expense of $90,000 and depreciation of $20,000.
Note: For all requirements, leave no cells blank - be certain to enter "0" wherever required. Enter your answers in dollar values not
in million of dollars.
a. Company A
b. Company B
c. Company C
Interest expense
deduction
Disallowed interest
expense carryforward
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