Homework Answers
Solution:
1)
| Gross income | $544,000 |
| Deduction | ($256,000) |
| Net income | $288,000 |
| Less: Net loss for 2 years | ($159,000) |
| Taxable income | $129,000 |
2)
Adjusted taxable income = 30%
$35,000,000 * 30% = $10,500,000
Add Interest income = $850,000
deductible interest expense = $11,350,000
Add Answer to:
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