Flamingo Corporation, a calendar year C corporation, manufactures appliances in the United States. For 2010, Flamingo has taxable income (before the domestic productions activity deduction [DPAD] of $850,000, qualified production activities income (QPAI) of $740,000, and W-2 wages attributable to QPAI of $150,000.
a. How much is Flamingo's DPAD for 2010?
b. Assume, instead, that W-2 wages attributable to QPAI are $120,000. How much is Flamingo's DPAD for 2010?