The IRS determined that Ernie Bledsoe underpaid his 2017 income tax by $11,200. Ernie's Form 1040 for that year reported an income tax liability of $31,800, so his correct 2017 income tax was $43,000 ($11,200 deficiency + $31,800 reported tax). Compute Ernie's penalty for a substantial understatement of income tax.
A. $0
B. $2,240
C. $1,240
D. $1,380
Answer: B
You might also like to view...
The costs of organizing a corporation, such as incorporation fees, attorneys' fees, and promotion expenses are called ____________________
Fill in the blank(s) with correct word
Berman Electronics, a chain of appliance stores in North America, caters to a wide range of customers. It has a marketing organization in which different operational specialists head different marketing activities
Berman Electronics is a(n) ________. A) customer management organization B) niche marketer C) early adopter D) functional organization E) laggard
If it takes 45 days to sell inventory, 30 days to collect for the sale, and creditors' payment terms are 60 days, the financing period is 135 days
Indicate whether the statement is true or false
Which of the following is not a process commonly considered in making products or delivering services?
A. continuous B. batch C. repetitive D. job shop E. subcontracting