Red Company Is a Proprietorship Owned by Sally, a Single

Red Company is a proprietorship owned by Sally, a single individual.Red manufactures and sells widgets.An examination of Red's records shows the following items for the current year: $\begin{array}{l}\text { Domestic production gross receipts } & \$ 2,500,000 \\\text { Cost of goods sold for domestic products } & 600,000 \\\text { Expenses directly related to domestic production gross } & \\\text { receipts (other than wages) } &280,000 \\ \text { Ratable portion of other expenses } & 100,000 \\\text { Other expenses not allocated to domestic production gross receipts } &30,000 \\\text { W-2 wages paid to employees engaged in qualified domestic } \\\text { production activities } & 270,000\\ \text { Total W-2 wages }& 320,000\\\\\text { Sally also had the following additional items: }\\\text { Dividends received } & \$ 20,000 \\\text { Interest income } & 10,000\end{array}$ ?
Determine Sally's domestic production activities deduction for the current year.