Question

Incorrect Question 18 0/0.2 pts In 2019, Kate Corp., had gross profit of $160M and business interest income of $2M. Kate Corp. also had deductible business expenses (other than interest and depreciation) of $60M, depreciation of $50M, and business interest expense of $40M. Kate Corp. is not a small corporation. What is Kate Corp's 2019 taxable income (after application of the business interest expense limitation)? Make sure to enter all of the zeros (e.g. 10M should be entered as 10,000,000). 100,000,000

Answer 1

Ans:

Kate Corporation
Income		Expenditure
Particulars	Amount	Particulars	Amount
Gross Profit	$            160,000,000	Business Expenses	$        60,000,000
Interest Income	$ 2,000,000	Depreciation	$        50,000,000
		Interest Expense	$        40,000,000
		Net Profit	$        12,000,000
Total	$            162,000,000	Total	$      162,000,000
Taxable Income	$        12,000,000