If Brad Files His Last Year's Individual Tax Return on July

question 30

Multiple Choice

If Brad files his last year's individual tax return on July 5 of the current year after having requested an extension, what is the amount of his failure-to-pay penalty if his total tax is $10,000 and he paid $9,500 through timely withholding and $500 with the return?

• A)$0
• B)$6
• C)$60
• D)none of the above

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Definitions:

Equity Entries

Accounting transactions that affect the owners' equity account in a company's balance sheet, such as issuing stock or paying dividends.

Parent Entities

Companies that own more than half of the voting rights of another company or have control over it, making the other company a subsidiary.

Goodwill

An intangible asset that represents the excess value of a company over the fair value of its identifiable assets and liabilities, often arising from acquisitions.

Impairment

A decrease in the recoverable value of an asset to below its carrying amount on the balance sheet, leading to a written down value.