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Problem 26-26 (Algorithmic) (LO. 6) Blair underpaid her taxes by $407,000. A portion of the underpayment was shown to be attributable to Blair's negligence ($162,800). A court found that the rest of the deficiency constituted civil fraud ($244,200). a. Compute the total fraud and negligence penalties. b. Construct a Microsoft Excel formula that will compute the penalties incurred in part (a). TOTALPEN=(FRAUDAMT*.75)+((TOTALUNDER-FRAUDAMT)*.2) ✓ c. Blair pays the penalties four years after committing the improper acts. Her after-tax rate of return on available cash is 7%. Construct a Microsoft Excel formula that generates the present value of Blair's penalty obligations. Round your answer to whole dollars. The present value of Blair's penalty obligations is $ ✓. , the result of PVPEN=PV(.07,4,,TOTALPEN)

Problem 26-26 (Algorithmic) (LO. 6) Blair underpaid her taxes by $407,000. A portion of the underpayment was shown to be attributable to Blair's negligence ($162,800). A court found that the rest of the deficiency constituted civil fraud ($244,200). a. Compute the total fraud and negligence penalties. b. Construct a Microsoft Excel formula that will compute the penalties incurred in part (a). TOTALPEN=(FRAUDAMT*.75)+((TOTALUNDER-FRAUDAMT)*.2) ✓ c. Blair pays the penalties four years after committing the improper acts. Her after-tax rate of return on available cash is 7%. Construct a Microsoft Excel formula that generates the present value of Blair's penalty obligations. Round your answer to whole dollars. The present value of Blair's penalty obligations is $ ✓. , the result of PVPEN=PV(.07,4,,TOTALPEN)

FINANCIAL ACCOUNTING
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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Problem 26-26 (Algorithmic) (LO. 6) Blair underpaid her taxes by $407,000. A portion of the underpayment was shown to be attributable to Blair's negligence ($162,800). A court found that the rest of the deficiency constituted civil fraud ($244,200). a. Compute the total fraud and negligence penalties. b. Construct a Microsoft Excel formula that will compute the penalties incurred in part (a). TOTALPEN=(FRAUDAMT*.75)+((TOTALUNDER-FRAUDAMT)*.2) c. Blair pays the penalties four years after committing the improper acts. Her after-tax rate of return on available cash is 7%. Construct a Microsoft Excel formula that generates the present value of Blair's penalty obligations. Round your answer to whole dollars. ✓. The present value of Blair's penalty obligations is $ the result of PVPEN=PV(.07,4,,TOTALPEN)
Transcribed Image Text:Problem 26-26 (Algorithmic) (LO. 6) Blair underpaid her taxes by $407,000. A portion of the underpayment was shown to be attributable to Blair's negligence ($162,800). A court found that the rest of the deficiency constituted civil fraud ($244,200). a. Compute the total fraud and negligence penalties. b. Construct a Microsoft Excel formula that will compute the penalties incurred in part (a). TOTALPEN=(FRAUDAMT*.75)+((TOTALUNDER-FRAUDAMT)*.2) c. Blair pays the penalties four years after committing the improper acts. Her after-tax rate of return on available cash is 7%. Construct a Microsoft Excel formula that generates the present value of Blair's penalty obligations. Round your answer to whole dollars. ✓. The present value of Blair's penalty obligations is $ the result of PVPEN=PV(.07,4,,TOTALPEN)
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