CL LLC is a manufacturing business and reported taxable income of $40 million before interest expense, taxes, depreciation, and amortization ("tax EBITDA"), plus $1.5 million of separately stated investment income. CL incurred interest expense of $1 million in connection with this investment income and $14 million in connection with its trade or business. Enter your answers in millions. a. How much interest expense can CL deduct? million Feedback Check My Work If a partnership pays interest expense, it must be allocated among the partnership's various activities, generally based on how and why the underlying debt arose. Special rules apply to business interest expense. For a partnership or an S corporation, in the year the interest expense arises, the entity determines the amount that can be deducted. b. How is the interest expense reported on CL's Schedule K? On its Schedule K, CL reports the addition, it reports the million of portfolio interest expense as a separately stated deduction. In million of excess business interest as a separatelystated itenm CL LLC is a manufacturing business and reported taxable income of $40 million before interest expense, taxes, depreciation, and amortization ("tax EBITDA"), plus $1.5 million of separately stated investment income. CL incurred interest expense of $1 million in connection with this investment income and $14 million in connection with its trade or business. Enter your answers in millions. a. How much interest expense can CL deduct? million Feedback Check My Work If a partnership pays interest expense, it must be allocated among the partnership's various activities, generally based on how and why the underlying debt arose. Special rules apply to business interest expense. For a partnership or an S corporation, in the year the interest expense arises, the entity determines the amount that can be deducted. b. How is the interest expense reported on CL's Schedule K? On its Schedule K, CL reports the addition, it reports the million of portfolio interest expense as a separately stated deduction. In million of excess business interest as a separatelystated itenm