Amelida Expects to Earn $145,000 of AGI and $125,000 of Taxable

question 100

Multiple Choice

Amelida expects to earn $145,000 of AGI and $125,000 of taxable income this year.She is concerned about underpayment penalties.Because of a substantial bonus,her prior year AGI was $155,000 and her taxable income was $135,000.Based on her fact pattern,which of the following scenarios will not allow her to avoid underpayment penalties?

• A)The estimated payments total at least 90% of the tax due for the current year.
• B)The estimated payments total at least 100% of the tax due for the prior year.
• C)The estimated payments total at least 110% of the tax due for the prior year.
• D)The estimated tax is less than $1,000.

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Definitions:

Few Products

A situation where a business offers a limited selection of goods or services.

Division Of Labour

The allocation of different parts of a manufacturing process or task to different individuals in order to improve efficiency and productivity.

Performance Results

The measurable outcomes achieved through work activities, reflecting the effectiveness and efficiency of an individual or organization.

Functional Structure

An organization structure that groups together people with similar skills who perform similar tasks.