Oak Corporation Manufactures Widgets in Its Factory in Houma,Louisiana

question 91

Essay

Oak Corporation manufactures widgets in its factory in Houma,Louisiana.Its taxable income (before the production deduction)is $200,000 and its net income from qualified production activities is $180,000.What is the amount of Oak Corporation's qualified production activities deduction?

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Definitions:

Life Insurance

A financial product that provides a payout to the beneficiaries upon the death of the insured.

Drug Test

A drug test is a technical analysis of a biological specimen that's used to detect the presence or absence of specified parent drugs or their metabolites.

Moral Hazard

Moral hazard occurs when there is a lack of incentive to guard against risk where one is protected from its consequences, often after entering into a contract or agreement.

Deductible

The amount paid out of pocket by the policyholder before an insurance company covers a claim.