What amount of DPAD may Tangerine claim

Assignment Help Accounting Basics
Reference no: EM132006998

Question - Tangerine, Inc., a calendar-year C corporation, has $800,000 of qualified production activities income (QPAI) and $950,000 of total taxable income in 2017. All of the QPAI was produced by Tangerine's manufacturing plant, which relies mainly on a temporary employment agency for its workforce, employing only two W-2 employees who in aggregate earned $140,000 in 2017. Tangerine also has an office in Mexico, which is unrelated to its domestic manufacturing plant and which employs one W-2 employee, who earned $75,000 in 2017. What amount of DPAD may Tangerine claim on its 2017 corporate tax return?

A. $73,350

B. $72,000

C. $70,000

D. Depends on the wages paid by the employment agency.

Reference no: EM132006998

Questions Cloud

How much money will you have in your account : And all accumulations earn 5.4% interest compounded annually, how much money will you have in your account by the end of year 26?
Interest compounded annually : If you deposit $16,500 at the Elmhurst Savings Bank on the last day of each year, and all accumulations earn 5.4% interest compounded annually
Amount remaining in the account : If 4.2% interest can be earned on any amount remaining in the account from year to year, how much money can Reggie withdraw if he takes the money at the end
Do you believe that abercrombie - fitch has made legitimate : Do you believe that Abercrombie & Fitch has made legitimate, integrative organizational changes in terms of diversity management?
What amount of DPAD may Tangerine claim : All of the QPAI was produced by Tangerine's manufacturing plant, What amount of DPAD may Tangerine claim on its 2017 corporate tax return
What is the corridor method and what is its purpose : An article noted "You also need to decide whether to amortize gains and losses using the corridor method, What is the corridor method and what is its purpose
Average annual compounded rate of return : What has been the average annual compounded rate of return on this investment?
What is the break-even quantity for each of the investment : The product is to sell for $3.45 per unit, What is the break-even quantity for each of the investment alternatives
Prepare the necessary correcting entries : Prepare the necessary correcting entries, assuming that Culver uses a calendar-year basis. The books for the current year have not been closed

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd