7. Max McCall's real property tax of $2,010.88 was due on Dec 14. Max could not pay until March 9" of the following year. The late penalty is 5% annually. a. What is the penalty amount? b. What is the total amount of the tax bill he must pay?

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter12: Tax Administration And Tax Planning
Section: Chapter Questions
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7. Max McCall's real property tax of $2,010.88 was due on Dec 14. Max could not pay until
March 9" of the following year. The late penalty is 5% annually.
a. What is the penalty amount?
b. What is the total amount of the tax bill he must pay?
Transcribed Image Text:7. Max McCall's real property tax of $2,010.88 was due on Dec 14. Max could not pay until March 9" of the following year. The late penalty is 5% annually. a. What is the penalty amount? b. What is the total amount of the tax bill he must pay?
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