The USProduction Activities Deduction Is Based on a Percentage of Which

question 100

Multiple Choice

The U.S.production activities deduction is based on a percentage of which of the following?

• A)taxable income before the production activities deduction
• B)50% of W-2 wages
• C)qualified production activities income
• D)both A and C above

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Definitions:

Cash Provided

Funds that have been generated or received by a company, often referring to cash flow from operating activities.

Dividends Paid

The portion of a company's earnings that is distributed to shareholders, usually in the form of cash or additional shares.

Cash Payments

Transactions that involve the transfer of cash from one entity to another.

Inventory Increase

An rise in the quantity or value of goods held by a company for the purpose of sale in the normal course of business.