In the current year, Nighthawk Corporation, a calendar year C corporation, has $4,180,000 of adjusted taxable income and $125,400 of business interest income. Nighthawk has no floor plan financing interest. The business interest expense for the year is $1,672,000.

a. Assume that Nighthawk has average gross receipts for the prior three-year period of $28,000,000.

Determine Nighthawk's current-year deduction for business interest. $ ( )

b. Assume that Nighthawk has average gross receipts for the prior three-year period of $22,500,000.

Determine Nighthawk's current-year deduction for business interest. $ ( )