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Help to solve! Problem 17-32 (Algorithmic) (LO. 6) Wan's AGI last year was $282,000. Her Federal income tax came to $84,600, paid through both withholding
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Problem 17-32 (Algorithmic) (LO. 6) Wan's AGI last year was $282,000. Her Federal income tax came to $84,600, paid through both withholding and estimated payments. This year, her AGI will be $423,000, with a projected tax liability of $63,450, all to be paid through estimates. Wan wants to pay the least amount of tax during the year that does not incur a penalty. If required, round intermediate calculations to two decimal place and your final answer to the nearest dollar. a. Compute Wan's total estimated tax payments for this year. Under the current-year method: $ 63,450 x Under the prior-year method: $ 84,600 x Feedback Check My Work A penalty is imposed for a failure to pay estimated income taxes. The penalty applies to individuals and corporations and is based on the rate of interest in effect for deficiency assessments. a eral tax $21,200. her total b. Assume instead that wan's AGI last year was $106,000 and estimated tax payments for this year. Under the current-year method: $ Under the prior-year method: $Step by Step Solution
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