On August 13 of the Following Year, Joy Files Her

question 42

Essay

On August 13 of the following year, Joy files her current calendar-year tax return and pays the amount due without having requested an extension. The tax shown on her return is $25,000. Her current-year withholding tax is $15,000. Joy pays no estimated taxes and does not claim any tax credits on her current-year return. Will Joy owe interest, and if so, on what amount and for how many days?

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Definitions:

Carrying Value

The book value of an asset as reported in the balance sheet, calculated as the original cost minus accumulated depreciation.

Par Value

The face value of a stock or bond as specified by the issuing company, which may differ from its market value.

Retirement

The point in time when an individual stops working in their professional career, often associated with aging and financial planning for the post-work phase of life.

Gain or Loss

The financial result that occurs when the selling price of an asset is higher or lower than its purchase price, respectively.