Rock Island Corporation generated taxable income (before deductions for depreciation, interest expense, and net operating loss carryovers)of $1 million in 2020. Taxable income was computed on $50 million of revenues and included $55,000 of interest income. The company paid $450,250 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 $1 million in 2020. Taxable income was computed on $50 million of revenues and included $55,000 of interest income. The company paid $450,250 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