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Sandy Bottoms Corporation Generated Taxable Income (Before the Domestic Manufacturing

Question 84

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Sandy Bottoms Corporation generated taxable income (before the domestic manufacturing deduction)of $3 million this year.The total income included $2,350,000 of qualified production activities income.The company paid $460,000 in W-2 wages to generate the qualified production activity income.What is Sandy Bottom's domestic manufacturing deduction for the year?

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$211,500 = 9% × $2,350,000
The domestic ...

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