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Red Corporation manufactures hand tools in the United States. For the current year, the QPAI derived from the manufacture of hand tools was $1 million. Red’s taxable income for the current year was $2.0 million. Last year, Red had an NOL of $800,000, which Red elected to carry forward.What is Red Corporation’s taxable income for the year?Ignoring the W–2 limitation, what is Red Corporation’s DPAD for the year?

Red Corporation manufactures hand tools in the United States. For the current year, the QPAI derived from the manufacture of hand tools was $1 million. Red’s taxable income for the current year was…

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