Michelle, a Calendar Year Taxpayer Subject to a 24% Marginal

question 45

Multiple Choice

Michelle, a calendar year taxpayer subject to a 24% marginal Federal income tax rate, claimed a Form 1040 charitable contribution deduction of $275,000 for a sculpture that the IRS later valued at $200,000. The applicable overvaluation penalty is:

• A) $0.
• B) $3,600.
• C) $7,200.
• D) $18,000.

---

Definitions:

Encoding Failure

A situation where the brain fails to create a memory link to information, making it difficult to remember later.

Basal Ganglia

A group of structures in the brain involved in coordinating movement, as well as aspects of learning and emotion.

Procedural Memories

Memories of how to perform tasks or activities, such as riding a bicycle, that are often unconsciously retained.

Hippocampus

A curved structure located within the temporal lobe of the brain, involved in the formation of new memories and is associated with learning and emotions.