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Bluejay Corporation, a Calendar Year Taxpayer, Manufactures and Sells Candles

Question 88

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Bluejay Corporation, a calendar year taxpayer, manufactures and sells candles. It has several factories in the U.S. and one in Jamaica. During 2014, it had DPGR of $4.1 million from the U.S. factories.
a. If the gross receipts from the products made in Jamaica are $200,000, what is Bluejay's DPGR for 2014?
b. If the gross receipts sourced to the Jamaica plant are $300,000, what is Bluejay's DPGR for 2014?

Correct Answer:

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a. $4.3 million, as the 5% de ...

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