assume the tax rate for all c-corporations is 21%.

Question 5 25 pts In 2020, Skye Corporation has $1.4 million of gross profit. $175,000 of depreciation expense, $260,000 of interest expense, and $980,000 of other operating expenses (all of these are for its business). Its average annual gross receipts for the three preceding years are $40 million. What is Skye's interest expense deduction for 2020? (Note that this is for 2020, 1.0, 50%) $210,000 $130,000 $122.500 $80,000