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Problem $8-77($LO $8-5)($Algo$)$

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This year Lloyd, a single taxpayer, estimates that his tax liability will be $$12,700.$ Last year, his total tax liability was $$16,800.$

He estimates that his tax withholding from his employer will be $$9,510.$

Problem $8-77$ Part b $($Algo$)$

b$.$ Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal

short$-$term rate is $5$ percent.

Note: Do not round intermediate calculations. Round your final answers to $2$ decimal places.