Question
Rivera underpaid her income tax by $45,000. The IRS can prove that $40,000 of the underpayment was due to fraud. Rivera pays the penalty five
Rivera underpaid her income tax by $45,000. The IRS can prove that $40,000 of the underpayment was due to fraud.
Rivera pays the penalty five years after committing the fraudulent act. Compute the present value of Rivera's penalty. Assume her after-tax rate of return on available cash is 9%. The present value factor for 5 years and 9% is 0.6499.
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Accounting Information Systems
Authors: Cynthia D Heagy, Constance M Lehmann
7th Edition
1111219516, 978-1111219512
