4-Renee operates a proprietorship selling collectibles over the web, and last year she purchased a building for $24 million for her business. This year, Renees proprietorship reported revenue of $87 million and incurred total expenses of $77.6 million. Her expenses included cost of goods sold of $48.5 million, sales commissions paid of $6.9 million, $9.5 million of interest paid on the building mortgage, and $12.7 million of depreciation. What is the maximum amount of business interest expense that Renee can deduct this year?

6-Jeremy is a calendar-year taxpayer who sometimes leases his business equipment to local organizations. He recorded the following receipts this year: $600 lease payment received from the Mens Club this year for renting Jeremys trailer last year. Jeremy billed them last year. How much of this payment is taxable income to Jeremy this year if Jeremy is an accrual-method taxpayer?

12-

Suppose that David had the following transactions for his business inventory of widgets (purchase prices below).

Widget Purchase Date Direct Cost Other Costs Total Cost #1 August 15 $ 2,100 $ 100 $ 2,200 #2 October 30 $ 2,200 $ 150 $ 2,350 #3 November 10 $ 2,900 $ 100 $ 3,000

In late December, David sold widget #2. What cost of goods sold would David record if he elects to use the LIFO method this year?