For testing purposes as to DPAD,taxable income is replaced by modified adjusted gross income in the case of an individual.

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This statement is true. In the case of an individual, modified adjusted gross income is used for testing purposes when determining eligibility for certain tax benefits such as the DPAD (Domestic Production Activities Deduction). Taxable income is not used for this purpose.

For Testing Purposes as to DPAD,taxable Income Is Replaced by Modified