Question
Fred has year 20X1 tax liability of $48,000. He estimates that 20X2 tax liability will be $60,000. Year 20X1 AGI was $160,000. Year 20X2 withholdings
Fred has year 20X1 tax liability of $48,000. He estimates that 20X2 tax liability will be $60,000. Year 20X1 AGI was $160,000. Year 20X2 withholdings from wages will be $38,000. What amount of estimated tax payment must Fred make each quarter to not incur an underpayment penalty for 20X2?
a. $4,000
b. $2,500
c. $3,700
d. $5,500
e. None of the answers provided is correct.
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Auditing And Systems Exam Questions And Explanations
Authors: Irvin N. Gleim
10th Edition
158194246X, 978-1581942460
