Chip's tax liability for last year was $33,000, and his AGI did not exceed $150,000. Chip requests an automatic extension forfiling his current year individual return but does not pay any additional tax with his extension request. By April 15 of thefollowing year, Chip has paid $35,000 of taxes in the form of wage withholding and estimated taxes. Chip files his currentyear return and pays the balance of the taxes due on July 21 of the following year.RequirementWhat penalties willI Chip owe if his current year tax is $41,000? $35,800? (Complete all input fields. Enter a "0" if there is nopenalty.)...if Chip's tax is$41,000if Chip's tax is$35,800PenaltyUnderpaying estimated taxFailure-to-fileFailure-to-pay tax

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What penalties will Chip owe if his current year tax is $41,000? $35,800? nonalty)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Chip's tax liability for last year was $33,000, and his AGI did not exceed $150,000. Chip requests an automatic extension for
filing his current year individual return but does not pay any additional tax with his extension request. By April 15 of the
following year, Chip has paid $35,000 of taxes in the form of wage withholding and estimated taxes. Chip files his current
year return and pays the balance of the taxes due on July 21 of the following year.
Requirement
What penalties willI Chip owe if his current year tax is $41,000? $35,800? (Complete all input fields. Enter a "0" if there is no
penalty.)
...
if Chip's tax is
$41,000
if Chip's tax is
$35,800
Penalty
Underpaying estimated tax
Failure-to-file
Failure-to-pay tax

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