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19 October, 08:39

Linda underpaid her taxes for the current year by $4,000 due to negligence. a. Calculate Linda's accuracy-related penalty for negligence. $ b. Assume that the underpayment of taxes by Linda was determined to be fraudulent, and calculate the total amount of Linda's fraud penalty.

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  1. 19 October, 08:49
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    a. Linda's accuracy-related penalty for negligence is $ 800.

    b. The total amount of Linda's fraud penalty is $3000.

    Explanation:

    a. Penalty for the negligence of Linda

    = $4,000*20%

    = $800

    Therefore, Linda's accuracy-related penalty for negligence is $ 800.

    b. Penalty for fraud of Linda

    = $4000*75%

    = $3000

    Therefore, The total amount of Linda's fraud penalty is $3000.
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