Northwest Company has average gross receipts of $50 million annually. This year, Northwest incurred $15.5 million of net business interest and has adjusted taxable income of $29 million.

Required:

Compute Northwest's current deduction for business interest and the amount of any business interest carryforward. (The CARES Act applies.)

Comments:

I think the straightforward answer is:

Business Interest Deduction = $8,700,000

Business Interest Carryforward = $6,800,000

However, that answer is wrong because the question specifies that the CARES Act applies and I am uncertain how to do so.