Business interest expense is limited for larger businesses. Which of the following statements is not correct with respect to this limitation?
A) Businesses with current year gross receipts exceeding $10 million are subject to this limitation.
B) Businesses will add back depreciation and amortization deductions to the taxable income in order to calculate the maximum interest deduction.
C) The interest expense deduction is limited to business interest income plus 30% of adjusted taxable income.
D) All of the above statements are accurate statements with respect to calculating the interest expense limitation.
A) Businesses with current year gross receipts exceeding $10 million are subject to this limitation.
The limitation applies to businesses with average annual gross receipts exceeding $25 million for the prior three year period.
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On January 1 . 2014, Marco Hospital issued a $250,000, 1 . percent, 5-year bond for $231,601 . Interest is payable on June 30 and December 31 . Marco uses the effective-interest method to amortize all premiums and discounts. Assuming an effective interest rate of 1 . percent, approximately how much discount will be amortized on December 31 . 2014?
a. $2,230 b. $1,480 c. $1,396 d. $987
When giving negative feedback on a peer's writing, emphasize the writer's role in creating the text, rather than the text itself
Indicate whether the statement is true or false
Which of the following is FALSE about service environment, typically not encountered in manufacturing environment?
a. It is not possible to store or inventory services. b. Services are not difficult to schedule because they are not typically labor intensive. c. The fluctuating demand for services and the need to customize services for individual customers makes scheduling services more difficult. d. Service schedules are constrained by legal requirements and union contracts.
Mutual funds that sell shares directly to investors and repurchase shares investors want to sell are called ________ funds
A) open-market B) open-end C) closed-end D) fair value