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Lorence Lange's Tax for the Year Is $7,000

Question 51

Multiple Choice

Lorence Lange's tax for the year is $7,000. He has paid in $4,400 in four quarterly payments during the year. Last year, his tax liability was $6,600. Which of the following is correct?


A) Lorence will not have an underpayment penalty.
B) Lorence will have an underpayment penalty on $2,600.
C) Lorence will have an underpayment penalty on $1,900.
D) Lorence will have an underpayment penalty on $2,200.
E) None of the above

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