Renee manufactured and sold a "gadget," a specialized asset used by auto manufacturers that qualifies for the domestic production activities deduction. Renee incurred $23,800 in direct expenses in the project, which includes $2,500 of wages Renee paid to employees in the manufacturing of the gadget. b. Renee sold the gadget for $47,200 and she reported AGI of $5,300 before considering the manufacturing deduction.