This year Lloyd, a single taxpayer, estimates that his tax liability will be $13,150. Last year, his total tax liability was $17,100.

He estimates that his tax withholding from his employer will be $9,795.

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.

\begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Dates } & \begin{tabular}{c} Actual \\ Withholding \end{tabular} & Required Withholding & \begin{tabular}{c} Over (Under) \\ Withheld \end{tabular} & Penalty Per Quarter \\ \hline April 15th & & & & \\ \hline June 15th & & & & \\ \hline September 15th & & & & \\ \hline January 15th & & & & \\ \hline Total & & & & \\ \hline \hline \end{tabular}