George Operates a Business That Generated Adjusted Gross Income of $250,000

question 19

Multiple Choice

George operates a business that generated adjusted gross income of $250,000 and taxable income of $170,000 this year (before the domestic production activities deduction) .Included in income was $70,000 of qualified production activities income.George paid $60,000 of wages to employees engaged in domestic manufacturing.What domestic production activities deduction will George be eligible to claim this year?

• A) $5,400.
• B) $6,300.
• C) $7,200.
• D) $15,300.
• E) $22,500.