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In the current year, Nighthawk Corporation, a calendar year C corporation, has $3.7 million of adjusted taxable income and $125,000 of business interest income, zero

In the current year, Nighthawk Corporation, a calendar year C corporation, has $3.7 million of adjusted taxable income and $125,000 of business interest income, zero floor plan financing interest, and $1.4 million of business interest expense.

a. Assume nighthawk has average gross receipts for the prior three year period of $33 million. Determine nighthawks current year deduction for business interest.

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