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Business, 05.05.2020 05:12 cbehunter05

VRivera underpaid her income tax by $45,000. The IRS can prove that $40,000 of the underpayment was due to fraud. a. Determine Rivera's civil fraud penalty. $ b. Rivera pays the penalty five years after committing the fraudulent act. Compute the present value of Rivera's penalty. Assume her after-tax rate of return on available cash is 9%. The present value factor for 5 years and 9% is 0.6499. $

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VRivera underpaid her income tax by $45,000. The IRS can prove that $40,000 of the underpayment was...
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