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DPAD_foreign_activities - 1 What is Flamingo’s DPGR 2...

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Topic: DPAD – Foreign & domestic activities Flamingo Company sells lawn furniture through big box stores. It manufactures some of the furniture and imports some from unrelated foreign producers. For 2010, Flamingo’s records revealed the following information: Furniture sold Manufactured Imported Gross receipts 2,500,000 1,500,000 Cost of goods sold 1,000,000 750,000 Flamingo, also has selling and marketing expenses of $600,000 and administrative expenses of $200,000. Flamingo’s uses the simplified deduction method. Required
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Unformatted text preview: : 1. What is Flamingo’s DPGR? 2. What is Flamingo’s QPAI? 3. What is Flamingo’s DPAD? 4. Compute Flamingo’s taxable income. Assume instead that Flamingo’s records do not identify its cost of goods sold (as between manufactured and imported furniture) but reflect an unallocated amount of $1,750,000. Further assume that Flamingo is qualified to use the small business simplified method of allocating cost of goods sold and other expenses. Required : 5. What is Flamingo’s QPAI? 6. What is Flamingo’s DPAD?...
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