Unformatted text preview: a", "c", and "d" are incorrect, per the above explanation. CPA-02244 Type1 M/C A-D Corr Ans: A PM#27 R 3-99 60
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Becker CPA Review, PassMaster Questions
Lecture: Regulation 3 121. CPA-02244 Nov 91 II #51 Page 32 No penalty will be imposed on a corporation for underpayment of estimated tax for a particular year if:
d. The tax for that year is less than $500.
Estimated tax payments for the year equal at least 80% of the tax shown on the return for that year.
The corporation is a personal holding company.
The alternative minimum tax is at least $1,000. CPA-02244
Choice "a" is correct. No underpayment of estimated tax penalty will be imposed if the total tax for the
year is less than $500.
Choice "b" is incorrect. No underpayment penalty will be imposed where estimated tax payments for the
year equal at least 100% of the tax shown on the return for that year.
Choice "c" is incorrect. Corporations...
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