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ABC Corporation has the following data from the current tax year: Business interest expense - $120,000 Business interest income - $500 Income before interest and

ABC Corporation has the following data from the current tax year:

  • Business interest expense - $120,000
  • Business interest income - $500
  • Income before interest and depreciation deductions - $25,000
  • Depreciation deductions - $56,000

Assuming ABC Corp is subject to the limitaiton on interest expense deduction, what amount is ABC Corp allowed to deduct for interest expense during the tax year?

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