Mickey,a Calendar Year Taxpayer,was Not Required to File a Federal

question 177

Multiple Choice

Mickey,a calendar year taxpayer,was not required to file a Federal income tax return last year because his AGI was negative due to business losses.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:

Private Consumption

Expenditure by households on goods and services, excluding purchases of residences.

Government Spending

Expenses incurred by the government to provide goods and services, invest in public projects, and support economic stability and growth.

Private Consumption

Expenditures by individual households or residents of a country on goods and services, not including purchases for business or investment purposes.

Gross Investment

The total amount of money spent on capital projects before deducting depreciation or other allowances for the wearing out of assets.