Compute the overvaluation penalty for each of the following independent cases involving the taxpayer's reporting of the
Question:
Compute the overvaluation penalty for each of the following independent cases involving the taxpayer's reporting of the fair market value of charitable-contribution property. In each case, assume a marginal income tax rate of 35 percent.
Taxpayer Corrected IRS Value Reported Valuation
a. Individual....................$30,000..................................$40,000
b. C Corporation................30,000....................................50,000
c. S Corporation.................40,000....................................50,000
d. Individual...................150,000..................................210,000
e. Individual...................150,000..................................250,000
f. C Corporation...............150,000..................................900,000
Step by Step Answer:
a 0 Reported valuation is not at least 150 percent of correct value b 0 Additional tax 7...View the full answer
