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Business, 02.12.2020 17:10 cyaransteenberg

Rivera 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. $fill in the blank 1 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. $fill in the blank 2

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