This year Lloyd, a single taxpayer, estimates that his tax liability will be $13,450. Last year, his total tax liability was $17,300.

He estimates that his tax withholding from his employer will be $9,985.

Required:

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.