bass corp a calendar year c corporation made qualifying 2006 estimated tax deposits 625430

Bass Corp., a calendar-year C corporation, made qualifying 2006 estimated tax deposits based on its actual 2005 tax liability. On March 15, 2007, Bass filed a timely automatic extension request for its 2006 corporate income tax return. Estimated tax deposits and the extension payment totaled $7,600. This amount was 95% of the total tax shown on Bass’ final 2006 corporate income tax return. Bass paid $400 additional tax on the final 2006 corporate income tax return filed before the extended due date. For the 2006 calendar year, Bass was subject to pay

1. I. Interest on the $400 tax payment made in 2007.
2. II. A tax delinquency penalty.
   1. a. I only.
   2. b. II only.
   3. c. Both I and II.
   4. d. Neither I nor II.