Which of the Following Statements About Estimated Tax Payments and Underpayment

question 64

Multiple Choice

Which of the following statements about estimated tax payments and underpayment penalties is true for individual taxpayers?

• A)Taxpayers who have paid their full tax liability by the original tax return due date are protected from underpayment penalties.
• B)Taxpayers who have paid their full tax liability by the extended tax return due date are protected from underpayment penalties.
• C)Taxpayers who have uneven income streams can pay estimated tax quarterly in uneven amounts and not be susceptible to underpayment penalties.
• D)Taxpayers who have paid their required amount of estimated tax, even though not on time, are protected from underpayment penalties.

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Definitions:

Markup

The addition to the cost price of items to include overhead expenses and profits.

Total Job Cost

The complete cost associated with a specific job or project, including materials, labor, overhead, and any other costs directly related to the project.

Job M825

A specific designation for a job or project, often used within a job-order costing system to track costs and progress.

Predetermined Overhead Rate

A calculated rate used to estimate the manufacturing overhead cost for a particular job or production process, calculated before costs are incurred.