34. PENALTY ON UNPAID INCOME TAX On January 5, Helen Terry made an income tax pay- ment that was due on September 15. The penalty was 11% simple interest on the unpaid tax of $2100. Find the penalty using exact interest.

34. PENALTY ON UNPAID INCOME TAX On January 5, Helen Terry made an income tax pay- ment that was due on September 15. The penalty was 11% simple interest on the unpaid tax of $2100. Find the penalty using exact interest.

PAYROLL ACCT.,2019 ED.(LL)-TEXT

19th Edition

ISBN:9781337619783

Author:BIEG

Publisher:BIEG

Chapter4: Income Tax Withholding

Section: Chapter Questions

Problem 3SSQ

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34. PENALTY ON UNPAID INCOME TAX
On January 5, Helen Terry made an income tax pay-
ment that was due on September 15. The penalty was 11% simple interest on the unpaid
tax of $2100. Find the penalty using exact interest.

Expert Solution

Step 1

$Total delays in days = 112 (September 15 to January 15) Interest rate = 11 % Unpaid amount = $ 2100$

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