Which of the Following Is Not True Concerning the Obligation

question 25

Multiple Choice

Which of the following is not true concerning the obligation of a corporation to make estimated tax payments?

• A)The estimates are due the 15th day of the 4th, 6th, 9th, and 12th months of the tax year.
• B)One-fourth of the estimated tax due is to be paid on each payment date.
• C)Generally, unless each payment is for 25 percent or more of the tax (after credits) shown on Form 1120, an underpayment penalty will be imposed.
• D)A corporation whose tax liability for the year is less than $500 is not subject to the underpayment penalty.
• E)None; all are true.

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Definitions:

Monopolistic Distributor

A sole provider of a product or service in a particular market, facing little to no competition.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers, usually downward sloping.

Marginal Cost

The cost increase associated with producing an additional unit of a product or service.

Mineral Water

Water that contains various minerals and is often considered beneficial for health, sourced from springs or wells.