Venus Motor Company has two plants from which it manufactures cars: Nevada, U.S. and Mexico. In addition, all executives of Venus and its subsidiaries are offered a discount when they lease cars from the company. All gross receipts are from the sales and leases of cars produced by Venus. In addition, all car leases are leases of cars produced in the Nevada plant. The following reflects the gross receipts from the various business activities: Sale of cars produced in Nevada-$1,700,000 Sale of cars produced in Mexico-450,000 Leasing cars to customer-400,000 Leasing cars to executives of the subsidiaries of Venus-250,000 Leasing cars to executives of Venus Motor Company-100,000 Sale of cars produced in Nevada to executives of Venus and its subsidiaries-50,000 What is the amount of gross
receipts that qualify as domestic production gross receipts (DPGR)?
a) $2,500,000
b) $2,100,000
c) $2,150,000
d) $2,400,000
Ans: c) $2,150,000
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What will be an ideal response?