Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sammy wholly owned a manufacturing business that started in 2022, and had $100,000 of gross receipts in 2022. In 2023, Sammy had: $9,000 of interest

Sammy wholly owned a manufacturing business that started in 2022, and had $100,000 of gross receipts in 2022. In 2023, Sammy had: $9,000 of interest expense on a business loan, $70,000 of revenue after cost of goods sold, and incurred $47,000 of other business deductions.

What amount of the $9,000 of interest can Sammy deduct as as a business expense?

Group of answer choices

$2,100

$9,000

$0

$6,900

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting principles and analysis

Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso

2nd Edition

471737933, 978-0471737933

More Books

Students also viewed these Accounting questions