Ivory,Inc. ,has taxable income of $600,000 and qualified production activities income (QPAI)of $400,000 in 2010.Ivory's domestic production activities deduction is:

Name: Ivory,Inc. ,has taxable income of $600,000 and qualified production activities income (QPAI)of $400,000 in 2010.Ivory's domestic production activities deduction is:
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Question

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The domestic production activities deduction is calculated as 9% of the lesser of taxable income or QPAI. Here, 9% of $400,000 (QPAI) is $36,000.

Ivory,Inc ,Has Taxable Income of $600,000 and Qualified Production Activities