Which of the Following Is the Calculation of the Failure-To-File

question 36

Multiple Choice

Which of the following is the calculation of the failure-to-file penalties?

• A)Half of 1 percent (0.5 percent) of the tax due for each month late, limited to 25 percent of the taxes due
• B)5 percent of the tax due for each quarter late, limited to 25 percent of the taxes due
• C)5 percent of the tax due for each month or part of the month that it is late, limited to 25 percent of the taxes due
• D)20 percent of the tax due
• E)5 percent of the tax due

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Definitions:

WACC

Weighted Average Cost of Capital; it represents a firm's blended cost of capital across all sources, including both debt and equity.

MCC Schedule

Marginal cost of capital schedule. A plot of the WACC (weighted average cost of capital) against the total amount of capital to be raised in a planning period. The MCC rises as more capital is raised and the costs of individual components experience step function increases.

Capital Spending

Refers to funds spent by a business or government on acquiring or maintaining physical assets such as property, plants, and equipment.

MCC

Marginal Cost of Capital; the cost of obtaining an additional dollar of new capital.