1 Tiger Inc has $11 million of taxable income What is the tax savings from tigers Maximum DPAD in 2011 2 In each of the following independent situations, determine the DPAD for 2011 for the corporation involved taxpayer QPAI TI W 2 Wages a green $ 800,000 00 $ 600,000 00 $ 120,000 b red $ 400,000 $ 500,000 $ 20,000 c ecru $ 900,000 $900,000 $ 300,000 d blue $ 700,000 $ 900,000 $ 200,000 e orange $ 900,000 $ 900,000 $200,000 Does not include a $100,000 NOL carryover from previous year Only $50,000 relates directly to manufacturing activities 3 Tern Corp produces and sells gas in the United States Of the gas it sells, about 4 is refined in Louisiana, and the remained 96 is purchased from non related source in the Middle East Suppose that currently the benefits of (SS) 199 to cowbird are so minimal that the tax savings are not worth the costs of compliance Is there anything that Cowbird can do 4 Dove Corporation manufactures and sells climate controlled wine cabinets Its most popular model sells for $3,000 and comes with a basic 90 day warranty For am Extra $150 this warranty is extended to three years, and for $300 the warranty is extended 10 years a If a customer buys a wine cabinet with the basic warranty, how much of the $3,000 paid represents DPGR to Dove b Assume a customer pays $3,150 to include the extended 3 year warranty How much of this amount is DPGR c Assume a customer pays $3,300 to include the extended 10 year warranty How much of this amount is DPGR d Could the sales agreement be modified so as to increase the amount qualifying as DPGR Explain 5 Finch Corp Sells portable air filtration system by mean of the internet and direct mail orders Most of the components are purchased from foreign suppliers at a cost of $1,600 Finch supplies the remaining components and assemblies the final product at a cost of $400 Finch u2019s marketing, packaging, and shipping expenses total $40 per unit Each unit is sold at $2,800 each a What is Finch u2019s DPGR per unit b It u2019s QPAI

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1  Tiger Inc has $11 million of taxable income  What is the tax savings from tigers Maximum DPAD in 2011  2  In each of the following independent situations, determine the DPAD for 2011 for the corporation involved  taxpayer QPAI TI W 2 Wages a green $ 800,000 00 $ 600,000 00 $ 120,000 b red $ 400,000 $ 500,000 $ 20,000 c ecru $ 900,000 $900,000  $ 300,000 d blue $ 700,000 $ 900,000 $ 200,000 e orange $ 900,000 $ 900,000 $200,000    Does not include a $100,000 NOL carryover from previous year   Only $50,000 relates directly to manufacturing activities  3  Tern Corp  produces and sells gas in the United States  Of the gas it sells, about 4  is refined in Louisiana, and the remained 96  is purchased from non related source in the Middle East  Suppose that currently the benefits of (SS) 199 to cowbird are so minimal that the tax savings are not worth the costs of compliance  Is there anything that Cowbird can do  4  Dove Corporation manufactures and sells climate controlled wine cabinets  Its most popular model sells for $3,000 and comes with a basic 90 day warranty  For am Extra $150 this warranty is extended to three years, and for $300 the warranty is extended 10 years a  If a customer buys a wine cabinet with the basic warranty, how much of the $3,000 paid represents DPGR to Dove  b  Assume a customer pays $3,150 to include the extended 3 year warranty  How much of this amount is DPGR  c  Assume a customer pays $3,300 to include the extended 10 year warranty  How much of this amount is DPGR  d  Could the sales agreement be modified so as to increase the amount qualifying as DPGR  Explain  5  Finch Corp  Sells portable air filtration system by mean of the internet and direct mail orders  Most of the components are purchased from foreign suppliers at a cost of $1,600  Finch supplies the remaining components and assemblies the final product at a cost of $400  Finch u2019s marketing, packaging, and shipping expenses total $40 per unit  Each unit is sold at $2,800 each  a  What is Finch u2019s DPGR per unit  b  It u2019s QPAI

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1. Tiger Inc has $11 million of taxable income. What is the tax savings from tigers Maximum DPAD in 2011? 2. In each of the

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	taxpayer	QPAI	TI	W-2 Wages
a	green	$ 800,000.00	$ 600,000.00	$ 120,000
b	red	$ 400,000	$ 500,000	$ 20,000
c	ecru	$ 900,000	$900,000*	$ 300,000
d	blue	$ 700,000	$ 900,000	$ 200,000
e	orange	$ 900,000	$ 900,000	$200,000**
	*Does not include a $100,000 NOL carryover from previous year
	**Only $50,000 relates directly to manufacturing activities.