A corporation's penalty for underpaying federal estimated taxes is:
Partially deductible.
Fully deductible if reasonable cause can be established for the underpayment.
Not deductible.
Fully deductible in the year paid.
Choice "C" is correct.Rule: The penalty for underpayment of federal estimated taxes is not deductible.Choices "d", "b", and "a" are incorrect, per the above rule.
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