1. Renee operates a proprietorship selling collectibles over the Web. This year, Renees business reported revenue of $95.5 million and deducted $88.6 million in expenses and loss carryovers. Her business deductions included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on a mortgage, $10.7 million of depreciation, and $2 million deduction for a net operating loss carryover.
   1. What is Renees adjusted taxable income for purposes of calculating the limitation on business interest expense?
   2. What is the maximum amount of business interest expense that Renee can deduct this year, and how is the disallowed interest expense (if any) treated?
   3. Suppose that Renees revenue includes $5 million of business interest income. What is the maximum amount of business interest expense that could be deducted this year under the business interest limitation?