CL LLC is a manufacturing business and reported taxable income of $40,000,000 before interest expense, taxes, depreciation, and amortization (tax EBITDA), plus $1,500,000 of separately stated investment income. CL incurred interest expense of $1,000,000 in connection with this investment income and $14,000,000 in con-nection with its trade or business.a.How much interest expense can CL deduct?b.How is the interest expense reported on CLs Schedule K?c.What action, if any, is needed by the LLC members?d.How would your answers to parts (a) through (c) change if CLs tax EBITDA was $4,000,000 (plus $150,000 of investment income), its average annual gross receipts for all prior tax years was $10,000,000 or less, and the interest expense amounts were $100,000 (investment) and $1,400,000 (business)?