Barr Fails to Make a Timely Deposit of FICA Taxes

question 57

Multiple Choice

Barr fails to make a timely deposit of FICA taxes and withheld income taxes until five days after the due date. The penalty facing Barr is:

• A) 2% of the undeposited taxes.
• B) 5% of the undeposited taxes.
• C) 10% of the undeposited taxes.
• D) 25% of the undeposited taxes.
• E) none of the above.

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Definitions:

Number of Firms

Refers to the total count of business entities participating in a particular market or industry.

Long-Run Equilibrium

a state in which all factors of production can be adjusted, and all firms in the market are making zero economic profits, reflecting a situation of perfect competition.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit; essentially, the cost of producing one more unit of a good.