Minnie, a Calendar Year Taxpayer, Filed a Return Correctly Showing

question 30

Multiple Choice

Minnie, a calendar year taxpayer, filed a return correctly showing a zero Federal income tax liability for last year because her Form 1040 showed various deductions and credits. For this tax year, Minnie's AGI is $120,000, and her tax liability is $20,000. To avoid a penalty for the current year, Minnie must make aggregate estimated tax payments of at least:

• A) $20,000.
• B) $18,000.
• C) $1,000 (minimum amount).
• D) $0.

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Definitions:

Settlement Date

The day on which a trade is finalized, and the buyer must make payment and the seller deliver the asset.

Foreign Exchange Gain

Profit arising from the appreciation of a foreign currency relative to the functional currency in foreign currency transactions.

Settlement Date

The date on which a trade or financial transaction must be completed, with the transfer of the asset and payment.

Year End

The end of a fiscal year or accounting period, at which time companies close books and prepare financial statements.