Compute the undervaluation penalty for each of the following independent cases involving the executor’s reporting of the value of a closely held business in the decedent’s gross estate. In each case, assume a marginal estate tax rate of 50 percent.

Reported Value Corrected IRS Valuation

a. $ 20,000 $ 25,000

b. 100,000 150,000

c. 150,000 250,000

d. 150,000 500,000