For the year 2013,Amber Corporation has taxable income of $880,000 and qualified production activities income (QPAI)of $600,000.The total W-2 wages paid to employees engaged in qualified domestic production activities are $116,000.Amber's DPAD for 2013 is:

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Quizplus · Accepted Answer

The Domestic Production Activities Deduction (DPAD) is calculated as 9% of the lesser of the QPAI ($600,000) or taxable income ($880,000), which is $54,000. Additionally, it cannot exceed 50% of the W-2 wages ($116,000), which is $58,000. Therefore, the DPAD is $54,000.

For the Year 2013,Amber Corporation Has Taxable Income of $880,000