If 2.7 million tax returns are filed both manually and electronically, the difference in error found in manual returns from electronic returns will be b. 538,650.
This can be found by the formula:
= Errors from manual filing - Errors from electronic filing
Solving gives:
= (20% x 2.7 million) - (0.05% x 2.7 million)
= 540,000 - 1,350
= 538,650 returns.
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