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Beta Accessories, Inc. has the following information from its financial statements ($millions) for the current year and last year. Calculate Beta's federal income tax payment
Beta Accessories, Inc. has the following information from its financial statements (\$millions) for the current year and last year. Calculate Beta's federal income tax payment for the current year. Scarlett had no carryforwards prior to last year. Recall that the Tax Cuts and Jobs Act limits the allowable interest deduction to 30% of EBIT and any amount not deducted in a given year may be carried forward to subsequent years. The federal tax rate is 21%. Hint: First, you'll need to calculate last year's maximum interest deduction and calculate how much unused interest deduction is carried forward to this year. a. $39.40 b. $41.48 c. $45.73 d. $40.00 e. $43.55
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