chris baker rsquo s adjusted gross income on her 2006 tax return was 160 000 the amo 624660

Chris Baker’s adjusted gross income on her 2006 tax return was $160,000. The amount covered a twelve-month period. For the 2007 tax year, Baker may avoid the penalty for the underpayment of estimated tax if the timely estimated tax payments equal the required annual amount of

1. I. 90% of the tax on the return for the current year, paid in four equal installments.
2. II. 100% of prior year’s tax liability, paid in four equal installments.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.