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Edward owns Fullmetal, Inc. which has the following items in 2020 Taxable Income (including all deductions) $10,000 Interest Expense $1,000,000 Rent Expense $15,000 Depreciation Expense

Edward owns Fullmetal, Inc. which has the following items in 2020

Taxable Income (including all deductions) $10,000

Interest Expense $1,000,000

Rent Expense $15,000

Depreciation Expense $20,00

Average Annual Gross Receipts $20,000,000 How much, if any, of Fullmetals interest is deductible?

a. $308,100

b. $302,100

c. $1,000,000

d. $303,600

e. None of these

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