Georgio,a Calendar Year Taxpayer Subject to a 33% Marginal Federal

question 125

Multiple Choice

Georgio,a calendar year taxpayer subject to a 33% marginal Federal income tax rate,claimed a Form 1040 charitable contribution deduction of $300,000 for a sculpture that the IRS later valued at $120,000.The applicable overvaluation penalty is:

• A)$10,000 (maximum penalty).
• B)$12,000.
• C)$24,000.
• D)$60,000.

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