George operates a business that generated revenues of $50 million and allocable taxable income of $1.25 million. Included in the computation of allocable taxable income were deductible expenses of $240,000 of business interest and $250,000 of depreciation. What is the business interest limitation that George will be subject to this year if the business does not qualify under the gross income test? $490,000 $447,000 $375,000 $300,000 $228,000
George operates a business that generated revenues of $50 million and allocable taxable income of $1.25 million. Included in the computation of allocable taxable income were deductible expenses of $240,000 of business interest and $250,000 of depreciation. What is the business interest limitation that George will be subject to this year if the business does not qualify under the gross income test? $490,000 $447,000 $375,000 $300,000 $228,000
Chapter19: Corporations: Distributions Not In Complete Liquidation
Section: Chapter Questions
Problem 34P
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Transcribed Image Text:George operates a business that generated revenues of $50 million and allocable taxable income of $1.25 million.
Included in the computation of allocable taxable income were deductible expenses of $240,000 of business interest and
$250,000 of depreciation. What is the business interest limitation that George will be subject to this year if the business
does not qualify under the gross income test?
$490,000
$447,000
$375,000
$300,000
$228,000
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