Indicate whether the statement is true or false, you must correct the statement

ID: 2380885 • Letter: I

Question

Indicate whether the statement is true or false, you must correct the statement and provide a bried explanation as to any applicable rule.

1. T or F

If disney corp. has qualified productiion activities income (QPAI) is $400,000, but has an overall loss of $15,000, the DPAD is $36,000.

2. T or F

The domestic production activities deduction (DPAD) is based on expenditures, not income.

3. T or F

A taxpayer may carry an NOL incurred three years.

Please give detail as to why each one is false or true

1) False, no deduction as already in losses

2) False, Its based on income and also expenditure

3) True