Homework Help Question & Answers

Calculate the allowed interest expense deduction under IRC 163j based on the following income statement: Gross...

Calculate the allowed interest expense deduction under IRC 163j based on the following income statement: Gross Sales - - - -

Calculate the allowed interest expense deduction under IRC 163j based on the following income statement: Gross Sales - - - - - - - - - - - - - - - - - - Cost of Goods Sold -- - Gross Profit $35,000,000 22,000,000 13,000,000 5,000,000 1,000,000 - - - - - - - - - - - - - - - - - - - - - - - - - - Interest Expense- regular Depreciation - - - - - - - - - - - - - - - - - - - - - - - - - - Amortization 200,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - All other deductions 3,000,000 Total Business Deductions 9,200,000 Net Income 3,800,000 Interest Income Earned 40,000 Capital Gain - non-business 50,000 Taxable Income before 163j limit $3,890,000 - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - ------ - - - - - - - - - - - - - - - - - - - - = 1 I O III 0 TL O IT .= 1 AT IT 1 III 1 ---+-+-+ O ILI 1 1 1 1 Answer:
0 0
Report
Answer #1

income Adjusted Interest Tolal Income $3890000 $40000 Sec 163j - Inlerest Expense ded - sum of Interest income and 30% of Adj

Know the answer?
Add Answer to:
Calculate the allowed interest expense deduction under IRC 163j based on the following income statement: Gross...
Your Answer: Your Name: What's your source?
Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Calculate the allowed interest expense deduction under IRC 163j based on the following income statement: Gross...

    Calculate the allowed interest expense deduction under IRC 163j based on the following income statement: Gross Sales $35,000,000 Cost of Goods Sold 22,000,000 Gross Profit 13,000,000 Interest Expense- regular 7,000,000 Depreciation 1,000,000 Interest Expense Floor Plan 200,000 All other deductions 3,000,000 Total Business Deductions 11,200,000 Net Income 1,800,000 Interest Income Earned 40,000 Capital Gain - non-business 50,000 Taxable Income before 163j limit $1,890,000

  • Calculate the allowed interest expense deduction under IRC 163j based on the following income statement: Gross...

    Calculate the allowed interest expense deduction under IRC 163j based on the following income statement: Gross Sales $35,000,000 Cost of Goods Sold 22,000,000 Gross Profit 13,000,000 Interest Expense- regular 7,000,000 Depreciation 1,000,000 Interest Expense Floor Plan 200,000 All other deductions 3,000,000 Total Business Deductions 11,200,000 Net Income 1,800,000 Interest Income Earned 40,000 Capital Gain - non-business 50,000 Taxable Income before 163 limit $1,890,000 Answer:

  • You are finishing your 3rd year in business with $544,000 of gross income and $256,000 in...

    You are finishing your 3rd year in business with $544,000 of gross income and $256,000 in deductions. Two years ago, you had a net loss of $86,000 and last year, you had a net loss of $73,000. Calculate your taxable income for this year. B Taxable Income= 80 00 Vou AwN Flip's Pizzeria Inc. has the following financial items for the current year: Adjusted Taxable Income before Interest $35,000,000 Business Interest Income $850,000 Interest Expense $16,500,000 How much interest expense...

  • For a business with no interest income, what is the limitation on business interest deductions? What...

    For a business with no interest income, what is the limitation on business interest deductions? What businesses are not subject to this limitation? For a business that is subject to the limitation, what benefit can the business get from interest payments that exceed the limit? Give an example. For this question please refer to the screen shot posted. Limitation on Business Interest Deductions THE KEY FACTS BUSINESS INTEREST LIMITATION • The deduction of business interest expense is limited to business...

  • Term Answer Description Adjustments A. This is mortgage interest expense. Adjusted gross income B. This is...

    Term Answer Description Adjustments A. This is mortgage interest expense. Adjusted gross income B. This is taxed as ordinary income if held less than 12 months. C. Examples of this term include charitable deductions,, state and local taxes, and moving Deductions expenses. D. This is a claim made by the taxpayer for each person supported by the taxpayer's Standard deduction income. Itemized deduction E. This term equals gross income less adjustments. Exemption F. Reduce AGI by the standard deduction and...

  • Using the married filing jointly status and their income and expense​ statement, calculate the 2017 tax...

    Using the married filing jointly status and their income and expense​ statement, calculate the 2017 tax liability for Shameka and Curtis Williams.​ First, use the standard​ deduction, and then use the following itemized​ deductions: Income Expenses Earned income ​$49,000.00 Home mortgage interest ​$7,800.00 Interest income 1,700.00 Real estate and state income taxes 3,800.00 Miscellaneous deductions 750.00 Explain to the Williams which method they should use and why. Shameka and​ Curtis' total gross income for the 2017 tax year is ​$nothing....

  • CL LLC is a manufacturing business and reported taxable income of $40,000,000 before interest expense, taxes,...

    CL LLC is a manufacturing business and reported taxable income of $40,000,000 before interest expense, taxes, depreciation, and amortization (“tax EBITDA”), plus $1,500,000 of separately stated investment income. CL incurred interest expense of $1,000,000 in connection with this investment income and $14,000,000 in con-nection with its trade or business.a.How much interest expense can CL deduct?b.How is the interest expense reported on CL’s Schedule K?c.What action, if any, is needed by the LLC members?d.How would your answers to parts (a) through...

  • 84) Eagle Corporation, a personal holding company, has the following results: Taxable income              $200,000 Dividends-received deduction       &nbs

    84) Eagle Corporation, a personal holding company, has the following results: Taxable income              $200,000 Dividends-received deduction              30,000 Excess charitable contributions              10,000 Long-term capital gains              10,000 Federal income taxes              61,000 Calculate the PHC tax. 85) Raptor Corporation is a PHC for 2009 and reports $200,000 of taxable income on its federal income tax return. Operating profit              $100,000 Long-term capital gain              80,000 Dividends (20%-owned corporation)              90,000 Interest              100,000 Gross income              370,000 Salaries expense              (50,000) General and administrative expense              (25,000) Dividends-received deduction              (72,000)...

  • Data Table Salary Taxable interest income Itemized deductions $ 2,300 800 450 STANDARD DEDUCTION Filing Status...

    Data Table Salary Taxable interest income Itemized deductions $ 2,300 800 450 STANDARD DEDUCTION Filing Status Married individuals filing joint returns and surviving spouses Heads of households Unmarried individuals (other than surviving spouses and heads of households) Married individuals filing separate returns Additional standard deduction for the aged and the blinod $ 24,000 18,000 12,000 12,000 Individual who is married and surviving spouses Individual who is unmarried and not a surviving spouse ,300 ,600 Taxpayer claimed as dependent on another...

  • P3-19 Common-size statement analysis A common-size income statement for Creek Enterprises 2018 operations follows. Using the...

    P3-19 Common-size statement analysis A common-size income statement for Creek Enterprises 2018 operations follows. Using the firm's 2019 income statement presented in Problem 3-16, develop the 2019 common-size income statement and compare it with the 2018 statement. Which areas require further analysis and investigation? Creek Enterprises Common-Size Income Statement for the Year Ended December 31, 2018 100.0% 65.9 34.1% Sales revenue ($35,000,000) Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense...

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.