Chassis, Inc., located in Detroit, MI, sells a new type of automobile chassis, which is produced by Auto Manufacturing, Inc., in East Lansing, MI. Which of the following statements is true regarding the 9% manufacturing deduction in 2016?

a) Chassis cannot take the U.S. Production Deduction.
b) Chassis and Auto Manufacturing can split the deduction between them.
c) Chassis can take the U.S. Production Deduction.
d) Auto Manufacturing cannot take the U.S. Production Deduction.

Ans: a) Chassis cannot take the U.S. Production Deduction.