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.

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Definitions:

Traits

Characteristic features or qualities distinguishing a person or thing, often inherited in the context of genetics.

Fixations

In psychoanalytic theory, a persistent focus of the id’s pleasure-seeking energies at an earlier stage of psychosexual development.

Creative Selves

The aspects of an individual's personality that involve creativity, imagination, and the ability to generate new ideas.

Objective Tests

Tests whose items must be answered in a specified, limited manner; tests whose items have concrete answers that are considered correct.