Calculate the allowed interest expense deduction under IRC 163j based on the following income statement: Gross Sales - - - - - - - - - - - - - - - - - - Cost of Goods Sold -- - Gross Profit $35,000,000 22,000,000 13,000,000 5,000,000 1,000,000 - - - - - - - - - - - - - - - - - - - - - - - - - - Interest Expense- regular Depreciation - - - - - - - - - - - - - - - - - - - - - - - - - - Amortization 200,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - All other deductions 3,000,000 Total Business Deductions 9,200,000 Net Income 3,800,000 Interest Income Earned 40,000 Capital Gain - non-business 50,000 Taxable Income before 163j limit $3,890,000 - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - ------ - - - - - - - - - - - - - - - - - - - - = 1 I O III 0 TL O IT .= 1 AT IT 1 III 1 ---+-+-+ O ILI 1 1 1