Renee operates a proprietorship selling collectibles over the web, and last year she purchased a...
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Accounting
Renee operates a proprietorship selling collectibles over the web, and last year she purchased a building for $24 million for her business. This year, Renees proprietorship reported revenue of $85 million and incurred total expenses of $78.1 million. Her expenses included cost of goods sold of $48.5 million, sales commissions paid of $16.9 million, $10.5 million of interest paid on the building mortgage, and $12.7 million of depreciation.
Suppose that Renees revenue includes $5 million of business interest income. What is the maximum amount of business interest expense that Renee can deduct this year?
(Additional Information: I have tried 7.53million and 5.5million and both of these aswers are wrong. Please help. Thanks!)
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