Max (A Calendar Year Taxpayer)donates a Painting to a Local

question 85

Multiple Choice

Max (a calendar year taxpayer) donates a painting to a local art museum (a qualified charity) .The painting cost Max $2,000 ten years ago and,according to one of Max's friends (an amateur artist) ,is worth $50,000.On his income tax return,Max deducts $50,000 as a charitable contribution.Upon later audit by the IRS,it is determined that the true value of the painting was $30,000.Assuming that Max is subject to a 30% marginal income tax rate,his penalty for overvaluation is:

• A)$0.
• B)$1,200.
• C)$2,400.
• D)$5,000 (maximum penalty).
• E)$6,000.

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Definitions:

Intimate Partner Violence

Acts of violence or aggression conducted by a current or former intimate partner.

Coercive Behaviors

Actions intended to pressure, manipulate, or force someone into doing something against their will.

Assaultive Behaviors

Actions that threaten or cause physical harm to another person, often indicative of underlying aggression or psychological issues.

Coercive Behavior

Actions that are intended to force or intimidate someone into behaving in an involuntary manner through use of threats, intimidation, or some other form of pressure or force.