Gretchen's 2012 Tax Return, Due April 15, 2013, Was Filed

question 81

True/False

Gretchen's 2012 tax return, due April 15, 2013, was filed on July 15, 2013. Her tax due with the return was $1,200. Gretchen owes a late filing penalty of $180.

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Definitions:

Face Value

The nominal value of a security or financial instrument as stated by the issuer, which may differ from its market value.

Total Cost of Borrowing

The entire amount that a borrower pays for a loan, including interest, fees, and any other charges.

Premium on Bonds Payable

The amount by which the bond's selling price exceeds its face value, reflecting higher interest or less risk as perceived by investors.

Face Value

The nominal or dollar value printed on a bond, note, or other financial instrument, representing the amount due at maturity.