LO.6 Compute the overvaluation penalty for each of the following independent cases involving the fair market value of charitable contribution property. In each case, assume a marginal income tax rate of 35%.

Taxpayer Corrected IRS Value Reported Valuation

a. Individual $ 40,000 $ 50,000

b. C corporation 30,000 50,000

c. S corporation 40,000 50,000

d. Individual 150,000 200,000

e. Individual 150,000 250,000

f. C corporation 150,000 750,000