During 2016, William purchases the following capital assets for use in his catering business:

New passenger automobile (September 30)	$35,200
Baking equipment (June 30)	10,560

Assume that William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile (which has a 5-year recovery period), and he also uses the MACRS accelerated method to calculate depreciation but elects out of bonus depreciation. Assume he has adequate taxable income.

Click here to access the depreciation table and click here to access the annual automobile depreciation limitations.

Calculate William's maximum depreciation deduction for 2016, assuming he uses the automobile 100 percent in his business.

Compute the penalty described for the following taxpayers.

If an amount is zero, enter "0". If required, round your answers to two decimal places.

a. Wilson filed his individual tax return on the original due date, but failed to pay $14,720 in taxes that were due with the return.

If Wilson pays the taxes exactly 15 months late, calculate the amount of his failure-to-pay penalty. $

b. Joan filed her individual income tax return 7 months after it was due. She did not request an extension of time for filing. Along with her return, Joan remitted a check for $15,110, which was the balance of the taxes she owed with her return.

Disregarding interest, calculate the total penalties that Joan will be required to pay, assuming the failure to file was not fraudulent. $

c. Jack filed his tax return 10 months and 19 days late and did not request an extension of time for filing. Jack's return indicated that he is to receive a $3,570 refund in taxes.

Calculate the amount of Jack's penalty for failure to file his tax return on time, assuming the failure-to-file was not fraudulent. $