Red Inc. is a C corporation and a calendar-year taxpayer. Red reports sales of $26 million in 2020, $29.3 million in 2021, and $32 million in 2022.

Is Red

a) subject to the business interest limitation in 2023?

Suppose that besides sales, Red also reports sales returns of $3.1 million in each year 2020–2022. Is Red subject to the business interest limitation in 2023?

b)

Suppose that Red began business on January 1, 2021, and reported gross receipts of $28.3 million in 2021 and $29.9 million in 2022. Is Red subject to the business interest limitation in 2023?

c)

Suppose that Red began business operations on October 1, 2022, and reported $7 million in gross receipts for the three-month 2022 short year. Is Red subject to the business interest limitation in 2023?