Ivory,Inc. ,has taxable income of $600,000 and qualified production activities income (QPAI)of $700,000 in 2014.Ivory's domestic production activities deduction is:

Name: Ivory,Inc. ,has taxable income of $600,000 and qualified production activities income (QPAI)of $700,000 in 2014.Ivory's domestic production activities deduction is:
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Question

Quizplus · Accepted Answer

DPAD is calculated for Ivory for 2014 as the lesser of the following:
∙ $700,000 × 9% = $63,000
∙ $600,000 × 9% = $54,000
So the DPAD is $54,000.

Ivory,Inc ,Has Taxable Income of $600,000 and Qualified Production Activities