Identify Which of the Following Statements Is True

question 9

Multiple Choice

Identify which of the following statements is true.

• A)An individual taxpayer may be subject to a penalty for underpayment of estimated taxes if his balance of tax due when he files is $500.
• B)A penalty for substantial understatement will potentially be assessed on an individual if the underpayment of tax exceeds the greater of 15% of the tax shown on the return or $5,000.
• C)Substantial authority exists for a position that is supported by a decision rendered by the Court of Appeals for the taxpayer's own circuit.
• D)All of the above are true.

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Definitions:

Median

A statistical measure representing the middle value in a data set, where half the numbers are above and half below.

Mode

In statistics, the value that appears most frequently in a data set; in common usage, a way or manner in which something occurs or is experienced, expressed, or done.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values.

Mean

A numerical metric that denotes the central value of a numerical array, determined by summing all the elements in the array and then dividing by the count of those elements.