2. In 2014, Sandal, Inc has qualified production activities income (QPAI) of $3.75 million and taxable income of $4 million. Sandal pays independent contractors $500,000. Sandal?s W-2 wages are $450,000, but only $225,000 of the wages paid are to employees engaged in qualified domestic production services.;a. How much is the domestic production activities deduction (DPAD) for Sandal, Inc. in 2013?;b. What suggestions might help Sandal increase its DPAD?;3. Juan acquired an apartment building on November 14, 2014, for $2.74 million. The value of the land was $440,000. Juan sold the apartment on October 22, 2020.;a. Determine his cost recovery for 2014;b. Determine his cost recovery for 2020;c. Determine his adjusted basis for the building as of the date of sale.;d. If Juan sold the building for $2.5 million, how much was his gain?
Paper#25724 | Written in 18-Jul-2015Price : $27