Adjusted taxable income is defined as follows for purposes of the business interest limitation: multiple choice a. taxable income allocable to the business computed without regard to interest income; depreciation, amortization, or depletion; interest expense; and net operating loss deductions. b. 30 percent of revenue after deducting depreciation and interest expense. c. taxable income allocable to debt invested in the business. d. interest income after deducting 30 percent of all deductible expenses. e. none of the choices are correct.

Correct answer is (A)

Explanation:

taxable income allocable to the business computed without regard to interest income; depreciation, amortization, or depletion; interest expense; and net operating loss deductions

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urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total