Question
Malik, Inc., a calendar year C corporation subject to a 21% flat income tax rate, claimed a Form 1120 charitable contribution deduction of $40,000 for
Malik, Inc., a calendar year C corporation subject to a 21% flat income tax rate, claimed a Form 1120 charitable contribution deduction of $40,000 for a sculpture that the IRS later valued at $10,000. The applicable overvaluation penalty is:
a. $0.
b. $840.
c. $1,260.
d. $4,000.
e. $8,000.
That's all the information i got in the question.
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
