Compute the Overvaluation Penalty for Each of the Following Independent $\begin{array}{llrr} && \text {Taxpayer}& \text {Corrected IRS Value}& \text {Reported Value}\\\end{array}$

question 20

Essay

Compute the overvaluation penalty for each of the following independent cases involving the taxpayer's reporting of the fair market value of charitable contribution property. In each case, assume a marginal Federal income tax rate of 35%.
$\begin{array}{llrr} && \text {Taxpayer}& \text {Corrected IRS Value}& \text {Reported Value}\\\end{array}$
A) $\begin{array}{llrr} & \text { Individual } &&& \$ 10,000 &&&&&& \$ 20,000 \\\end{array}$
B) $\begin{array}{llrr} & \text { C corporation } && 10,000 &&&&&& 30,000 \\\end{array}$
C) $\begin{array}{llrr}& \text { S corporation } && 10,000 &&&&&& 30,000 \\\end{array}$
D) $\begin{array}{llrr} & \text { Individual } &&& 100,000 &&&&&& 175,000 \\\end{array}$
E) $\begin{array}{llrr} & \text { Individual } &&& 100,000 &&&&&& 250,000 \\\end{array}$
F) $\begin{array}{llrr}& \text { C corporation } && 100,000 &&&&& 500,000\end{array}$

• A)\(\begin{array}{llrr} & \text { Individual } &&& \$ 10,000 &&&&&& \$ 20,000 \\\end{array}\)
• B)\(\begin{array}{llrr} & \text { C corporation } && 10,000 &&&&&& 30,000 \\\end{array}\)
• C)\(\begin{array}{llrr}& \text { S corporation } && 10,000 &&&&&& 30,000 \\\end{array}\)
• D)\(\begin{array}{llrr} & \text { Individual } &&& 100,000 &&&&&& 175,000 \\\end{array}\)
• E)\(\begin{array}{llrr} & \text { Individual } &&& 100,000 &&&&&& 250,000 \\\end{array}\)
• F)\(\begin{array}{llrr}& \text { C corporation } && 100,000 &&&&& 500,000
• \end{array}\)

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