Mickey, a Calendar Year Taxpayer, Was Not Required to File

question 33

Multiple Choice

Mickey, a calendar year taxpayer, was not required to file a Federal income tax return last year because his AGI was very low. For this tax year, his AGI is $120,000 and his tax liability is $10,000. To avoid a penalty for tax underpayments for the current year, Mickey must make aggregate estimated tax payments of at least:

• A) $10,000.
• B) $9,000.
• C) $1,000 (minimum amount).
• D) $0.

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Definitions:

Expected Cash Collections

The projected amount of money a company anticipates receiving from customers in a future period, based on sales and credit terms.

Selling And Administrative Expense

Costs related to the selling of products and the management of the company, excluding production costs.

Merchandise Purchases Cost

is the total cost associated with buying inventory for resale, including the purchase price, shipping, and handling fees.

Budgeted Cost

An estimated amount set aside for expenditures in the budgeting process, serving as a financial guideline for spending.