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ZYX Inc. has average gross receipts of $ 4 0 million per year over the last several years. In the current year, ZYX has $

ZYX Inc. has average gross receipts of $40 million per year over the last several years. In the current year, ZYX has $2,000,000 of taxable income before considering interest. ZYX has $150,000 of business interest income, $1,200,000 of interest expense, and no floor plan financing. How much interest expense can ZYX deduct?

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