Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chet's tax liability for last year was $14,500, and his AGI did not exceed $150,000. Chet requests an automatic extension for filing his current year

Chet's tax liability for last year was $14,500, and his AGI did not exceed $150,000. Chet requests an automatic extension for filing his current year individual return but does not pay any additional tax with his extension request. By April 15 of the following year, Chet has paid $15,000 of taxes in the form of wage withholding and estimated taxes. Chet files his current year return and pays the balance of the taxes due on May 30 of the following year. Chet owes the following penalties when his current year tax is (a) $17,000, and (b) $15,500. (Click the icon to view the penalties owed.) (Click the icon to view the factor table for a 6% interest rate, compounding daily.) Read the requirements. Requirement a. Will Chet owe interest? If so, on what amount and for how many days? Assume that any interest period begins on April 16 of a non-leap year. (Complete all answer boxes. Enter a "0" for the amount of interest and for the number of days if Chet owes no interest.) For Scenario (a) when Chet's current year tax is $17,000: Chet will owe interest on for days. For Scenario (b) when Chet's current year tax is $15,500: Chet will owe interest on for days. Requirement b. Assume the applicable interest rate is 6%. Compute Chet's interest payable if his current year tax is $17,000. (If using a factor table, use factors to nine decimal places, X.XXXXXXXXX. Do not round interim currency calculations. Only round your final answer to the nearest whole dollar.) If Chet's current year tax is $17,000 his interest payable is Reference if Chet's tax if Chet's tax Penalty is $17,000 is $15,500 Underpaying estimated tax 0 $ 0 Failure-to-file Failure-to-pay tax 0 0 20 0 Next Reference 123456789 TABLE --6.0% COMPOUND RATE Days Factor Days 0.000164384 0.000328794 0.000493232 0.000657696 0.000822188 0.000986707 0.001151253 0.001315825 1234567890 IS IS 5 50 50 50 556 Factor 56 52 0.008583875 53 54 55 0.008749669 0.008915491 0.009081340 0.009247217 57 0.009413120 58 0.009579051 59 0.009745009 0.001480425 60 0.009910995 10 11 12 13 14 15 16 01234565 0.001645052 0.001809706 0.001974387 0.002139095 0.002303830 0.002468593 0.002633382 17 18 H2222 19 20 21 22 23 20163 0.002798199 0.002963042 0.003127913 0.003292810 0.003457735 0.003622687 123456780 61 0.010077008 62 63 64 0.010243048 0.010409115 0.010575210 65 0.010741332 66 0.010907481 67 0.011073658 68 0.011239861 69 0.011406093 70 0.011572351 71 72 73 123 0.011738637 0.011904950 0.012071291 0.003787666 74 0.012237659 - X Reference NNNN2233 m m m m m m m 3 444 24 0.003952673 75 0.012404054 25 0.004117706 76 67 0.012570476 26 0.004282766 77 0.012736926 27 0.004447854 28 0.004612969 29 0.004778110 30 0.004943279 31 0.005108476 32 0.005273699 33 0.005438949 34 0.005604227 35 0.005769532 36 0.005934864 37 0.006100223 38 0.006265609 39 0.006431023 40 0.006596464 41 0.006761931 F co co co co co co co co co on on on 896123456789012 78 0.012903404 79 0.013069908 80 0.013236440 81 0.013403000 82 83 84 85 0.013569587 0.013736201 0.013902842 0.014069511 86 0.014236208 87 0.014402931 88 89 0.014569683 0.014736461 90 91 0.014903267 0.015070101 92 0.015236961 42 0.006927427 43 0.007092949 44 0.007258498 45 0.007424075 46 0.007589679 47 0.007755310 48 0.007920969 49 0.008086654 50 0.008252367

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Double Entry Exercises 40 Full Cycle Accounting Cases With Solutions

Authors: L Castelluzzo

1st Edition

1731173954, 978-1731173959

More Books

Students also viewed these Accounting questions

Question

Describe the linkages between HRM and strategy formulation. page 74

Answered: 1 week ago

Question

Identify approaches to improving retention rates.

Answered: 1 week ago