Gerald Requests an Extension for Filing His Last Year's Individual

question 7

Multiple Choice

Gerald requests an extension for filing his last year's individual income tax return. His tax liability is $10,000, of which $8,000 was withheld, leaving a balance due of $2,000 when he files on August 1 of the current year. His penalty for failure to pay the tax on time is

• A) $0.
• B) $300.
• C) $400.
• D) $40.

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Definitions:

Logarithmic

Pertaining to or involving a logarithm, which is the exponent that indicates the power to which a base number is raised to obtain a specific number.

Arithmetic Method

A quantitative approach involving basic mathematical operations to solve problems or make calculations.

Learning-Curve Coefficients

Factors that quantify the rate of improvement or learning in an operation, typically showing how costs decrease as experience increases.

Labour-Intensive

Describes industries or processes that require a large amount of manual labor input compared to capital investment.