George operates a business that generated revenues of $51 million and allocable taxable income of $1.26 million. Included in the computation of allocable taxable income were deductible expenses of $240,500 of business interest and $250,500 of depreciation. What is the maximum business interest deduction that George will be eligible to claim this year

Maximum business interest deduction that George will be eligible to claim this year will be $525,300

Explanation:

Maximum business interest deduction is 30% of Adjusted Taxable income (ATI)

Adjusted Taxable income (ATI) = 1260000+240500+250500= $1,751,000

Maximum business interest deduction = 1751000*30%= $525300

The Maximum business interest deduction to be claim by George this year is  $525,300

Explanation:

The maximum business interest deduction will be 30 percent of Adjustable Tax income.

Adjustable Tax income = Taxable Income +  Business Interest + Depreciation

Adjustable Tax income = $1,260,000 + $240,500 + $250,500

Adjustable Tax income =  $1,751,000

Maximum business interest deduction = 30% ×  Adjustable Tax income

Maximum business interest deduction = 30% × $1,751,000

Maximum business interest deduction = $525,300

answer; drop shippers;

the first one $24,630