Hippo,Inc.,a calendar year C corporation,manufactures golf gloves.For the current year,Hippo had taxable income (before DPAD)of $900,000,qualified domestic production activities income of $750,000,and W-2 wages related to qualified production activities income of $140,000.Hippo's domestic production activities deduction for the current year is:

Question

Quizplus · Accepted Answer

The DPAD is equal to 9% of the lesser of the qualified production activities income or taxable income before the DPAD. In this case, the lesser amount is $750,000. 9% of $750,000 is $67,500. This is the maximum DPAD that Hippo, Inc. can claim for the current year based on the given information.

Hippo,Inc,A Calendar Year C Corporation,manufactures Golf Gloves