Julie, a self-employed individual, is required to make estimated payments of her tax liability for the year. Her tax liability for 2020 was $25,000, and her AGI was less than $150,000. For 2021, Julie ultimately determines that her income tax liability is $18,000. During the year, however, she made the following payments, totaling $13,000: April 15, 2021 $4,500 June 15, 2021 2,800 September 15, 2021 4,100 January 18, 2022 1,600 Total paid $13,000 Because Julie prepaid so little of her ultimate income tax liability, she now realizes that she may be subject to the penalty for underpayment

Julie, a self-employed individual, is required to make estimated payments of her tax liability for the year. Her tax liability for 2020 was $25,000, and her AGI was less than $150,000. For 2021, Julie ultimately determines that her income tax liability is $18,000. During the year, however, she made the following payments, totaling $13,000: April 15, 2021 $4,500 June 15, 2021 2,800 September 15, 2021 4,100 January 18, 2022 1,600 Total paid $13,000 Because Julie prepaid so little of her ultimate income tax liability, she now realizes that she may be subject to the penalty for underpayment

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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