# 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:

##### Add Answer to: Calculate the allowed interest expense deduction under IRC 163j based on the following income statement: Gross...
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 - - - - - - - - - - - - - - - - - - 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 - -...

• ### 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...

• ### 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)...

• ### Sally's adjusted gross income is \$38,000. She owns a home and has a mortgage interest expense...

Sally's adjusted gross income is \$38,000. She owns a home and has a mortgage interest expense of \$9500, charitable contributions of \$1500, property tax of \$7000 and interest on her car loan of \$2100. This year she also had medical expenses of \$2000. She is allowed a standard deduction of \$12,000. What is Sally's taxable income?

• ### 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....

• ### Construct a common-size income statement. Check figure: NPAT for 2012 should be 4.0% Be sure to...

Construct a common-size income statement. Check figure: NPAT for 2012 should be 4.0% Be sure to indicate if each account is "better" or "worse" compared to the previous year. P3-19 Common-size statement analysis A common-size income statement for Creek Enterprises' 2011 operations follows. Using the firm's 2012 income statement pre- sented in Problem 3-18, develop the 2012 common-size income statement and com- pare it to the 2011 statement. Which areas require further analysis and investigation? Creek Enterprises Common-Size Income Statement...

• ### 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