In the current year, Amber Corporation has taxable income of $880,000, alternative minimum taxable income of $600,000, and qualified production activities income (QPAI) of $640,000 . The total W-2 wages paid to employees engaged in qualified domestic production activities are $116,000 . Amber's DPAD for the current year is:
a. $54,000.
b. $57,600.
c. $58,000.
d. $79,200.
e. None of the above.
a
RATIONALE: Amber's DPAD is limited to 9% of alternative minimum taxable income of $600,000.
$600,000 × 9% = $54,000.
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