4. Alan and Remi estimate their 2020 income tax liability to be $27,000. They reported an actual 2019 income tax liability of $21,000. They estimate their 2020 adjusted gross income to be $165,000 and their total federal income tax withholding for 2020 to be $19,000. To avoid an underpayment penalty for 2020, the amount of each of their 2020 quarterly estimated income tax payments must be: a. $1,025. b. $1,325. C. $500. d. $2,000. e. none of the above. 5. Ervin's actual income tax liability for 2020 is $23,600. His 2019 income tax liability was $22,000. His 2020 adjusted gross income is $115,000. He had $16,000 in federal income withheld during the year and paid quarterly estimated tax payments as follows: 4/15/20 $700 6/15/20 $800 $900 $1,000 9/15/20 1/15/21 The amount that will be subject to an underpayment penalty for the second quarter is: a. $1,250. b. $1,100. C. $700. d. $510. e. none of the above. 6. Hank, single, is the sole owner of a pet store which he operates as a sole proprietorship. The business earned $175,000 in revenue and incurred and paid $118,000 in business expenses. Hank's itemized deductions total $11,200. Hank's taxable income for 2020 is: a. $33,200. b. $44,600. C. $45,800. d. $127,600. e none of the above