Domain Manager On Campus &O; DDely University 9 - HW Problems Help Save & ExitS

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Domain Manager On Campus &O; DDely University 9 - HW Problems Help Save & ExitS Check my w The following information applies to the questionns displryed below Renee manufactured and sold a "gadget" a speciallzed asset used by auto manufacturers that qualifies for the domestic production activibes deduction Renee incurred $16,000 in direct expenses in the project, which includes $3,200 of wages Renee paid to employees in the manufacturing of the gadget t 3 of 3 What is Renee's domestic production activities deduction for the gadget in each of the following alternative scenarios? Problem 9-55 Part-c Rene sld the gedget or s48.500 and she reported o fore considering the manufacturing diduction 5 R T Y U

Explanation / Answer

Solution :-

Working Note :-

50% of Wage Limitation DPAD = $3200*50% = $1600

Particulars Amount ($) Qualified Domestic Gross Receipts 48500 Less : Allocable Costs and Expense (16000) Qualified Production activity income 32500 Statuatory % 9% Tenative DPAD ($32500*9%) (A) 2925 50% of Wage limitation DPAD (Working Note) (B) 1600 DPAD (A or B Whichever is Lesser) 1600

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