Kate Files Her Tax Return 36 Days After the Due

question 87

Multiple Choice

Kate files her tax return 36 days after the due date.When she files the return,she sends a check for $2,000 which is the balance of the tax owed by her.Kate's penalty for failure to file a return will be

• A)0)5% per month (or factor thereof)up to a maximum of 25%.
• B)5% per month (or factor thereof)up to a maximum of 25%.
• C)20% per month (or factor thereof).
• D)25%.

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Definitions:

Total Stockholders' Equity

The net value of a company, calculated as total assets minus total liabilities.

Retained Earnings

The portion of a company's profits that is kept or retained for re-investment in the business or to pay debt, rather than being paid out as dividends to shareholders.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the market.

Issue Price Over Par

Occurs when a security, typically a bond, is sold at a price higher than its face value.