Mr. Leon filed his 2014 Form 1040 by the April 15, 2015, filing date. In 2017, the IRS issued a notice of deficiency to Mr. Leon in which it assessed $7,700 of additional 2014 income tax. Compute the total amount that Mr. Leon owes to the federal government assuming:
a. The annual interest rate (underpayment rate) throughout the 24-month period between April 15, 2015, and the assessment date was 4 percent. Ignore the effect of interest compounding.
b. The IRS imposed a negligence penalty on the entire deficiency.
c. The IRS imposed a civil fraud penalty on the entire deficiency.