User Account

All Pages

Compute the penalty that the agent can impose

Assignment Help Financial Management
Reference no: EM13887432

The revenue agent who audited Ms. Hsui's Form 1040 discovered that she had claimed a $15,250 deduction that wasn't allowed by the tax law. The improper deduction reduced Ms. Hsui's tax by $5,033. Her total tax deficiency for the year under audit was $6,490.

a. Compute the penalty that the agent can impose if he concludes that the improper deduction was due to Ms. Hsui's negligence in preparing her tax return.

b. Compute the penalty that the agent can impose if he concludes that the improper deduction represented Ms. Hsui's deliberate attempt to cheat the government by underpaying her tax.

Reference no: EM13887432

Questions Cloud

Suggest how malcolm and susan could potentially solve dilema : Explain the role of the RBA with respect to interest rates and why it is necessary to have these controls and suggest how Malcolm and Susan could potentially solve their dilemma.
Determine the exact cause of death : A 75-year-old man was found unconscious in his bathroom after falling and hitting his head. He survived for several hours but died later in the hospital. An autopsy was performed to determine the exact cause of death. Evidence indicated that the man ..
Estimate how long it would take computer to compute fibnum : How does the execution time of fibnum(n) depend on the execution time for fibnum(n-1) and fibnum(n-2)? Use this relationship to obtain an ap- proximate formula for the execution time of fibnum(n) as a function of n.
Determining the steady stress : Calculate whether a bar of this steel would fail by fatigue if it were subjected to a steady stress of 600 MPa and a cyclic stress of 500 MPa.
Compute the penalty that the agent can impose : Compute the penalty that the agent can impose if he concludes that the improper deduction was due to Ms. Hsui's negligence in preparing her tax return. Compute the penalty that the agent can impose if he concludes that the improper deduction represen..
Feed glucose containing radioactive carbon molecules : You have designed an experiment in which you feed glucose containing radioactive carbon molecules to heterotrophic cells growing rapidly in the presence of oxygen.  Over time, you would find the radioactivity in a. ATP b. NADH
Explain the potential harms and the potential benefits : Explain the potential harms and the potential benefits of conflict, and identify the ways in which how conflict is managed influences whether the outcomes are positive or negative.
How company differ in term of audit committee characteristic : How do the companies differ in terms of audit committee characteristics? What do you think are the underlying causes of the differences?
Compute the negligence penalty : If the error resulted from Mr. Stanhope's intentional disregard of a tax rule, compute the negligence penalty. Should the fact of Mr. Stanhope's education and business experience in sequence the agent's decision to impose the negligence penalty?

Reviews

Write a Review

Financial Management Questions & Answers

  Annual cash flows-what is the future value of the account

Annual cash flows-If the interest rate on deposits is 5.5% and the payment day 1 is $85 instead of after one year, what is the future value of the account at the end of five years? If the hurdle rate is 5.5% what is the PV of these cash flows? If it ..

  Share in free cash flows to equity

A company currently has $2.40 per share in free cash flows to equity (FCFE). The FCFE are anticipated to grow at 6% per year. If the investor’s required return is 14%, what is the anticipated value of the firm at the end of 3 years?

  What is the expected return on the portfolio after purchase

Your portfolio is diversified. It has an expected return of 10.0% and a beta of .95. You want to add 500 shares of Company D's at $40 a share to your portfolio.  Company D's has an expected return of 9.0% and a beta of .75. The total value of the inv..

  What might the firm do to change the ratio

This Learning Activity involves preparing a preliminary financial analysis of one of the largest firms in the world, McDonalds Corporation. Why is there an increasing trend or a decreasing trend? Is this trend favorable or unfavorable? Why? What migh..

  Communications is new firm in rapidly growing industry

Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 23 percent a year for the next 4 years and then decreasing the growth rate to 4 percent per year. The company just paid ..

  The financial services modernization act

The Financial Services Modernization Act of 1999 (Gramm-Leach-Bliley Act) basically repealed the Glass-Steagall Act of 1933. Do you believe the passage of this Act was beneficial for the banking industry, or will it be a detriment to the industry in ..

  Annual effective rate on the sinking fund

Quetzalcoatl and Tonantzin each take out a 17-year loan of $L. Quetzalcoatl repays his loan using the amortization method, at an annual effective rate of i. He makes an annual payment of $500 at the end of each year.

  Bond valuation-require effective annual interest rate

You are considering a 30-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid semiannually. If you require an "effective" annual interest rate.

  Calculate and interpret descriptive statistical analysis

Calculate and interpret descriptive statistical analysis

  About the save money

You are going to save money for your son’s education. You have decided to place $2,539 every half year at the end of the period into a saving account earning 8.14 percent per year, compounded semi-annually for the next 9 years. How much money will be..

  What is the after-tax cost of debt capital

A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 15 years and has a current market price of $950. If the corporation sells more bonds it will incur flotation costs of $25 per bond. If the corporate tax rate is ..

  Require stead to ked your after-tax real yield

Several years ago, a Texas bank offered a thirty-year CD with an annual return indexed to inflation. The rate offered was the annual percentage increase in the CPI plus 4 percent. Show the after-tax real return you would earn, assuming that the infla..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd