Rock Island Corporation generated taxable income (before deductions for depreciation, interest expense, and net operating loss carryovers) of $3 million this year. Taxable income was computed on $50 million of revenues and included $140,000 of interest income. The company paid $454,500 in interest expense. What is Rock Island's maximum business interest deduction for the year?

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The Answer of Rock Island Corporation generated taxable income (before deductions for depreciation, interest expense, and net operating loss carryovers) of $3 million this year. Taxable income was computed on $50 million of revenues and included $140,000 of interest income. The company paid $454,500 in interest expense. What is Rock Island's maximum business interest deduction for the year?

Rock Island Corporation Generated Taxable Income (Before Deductions for Depreciation