Question 1

Ultimately, most taxes are paid by individuals.Explain what this means in terms of income and payroll taxes paid by a corporation.

Accepted Answer

A corporation pays many types of taxes,

Question 2

The formula for the Federal income tax on corporations is the same as that applicable to individuals.

Accepted Answer

A) True 
 B)False

Question 3

A fixture will be subject to the ad valorem tax on personalty rather than the ad valorem tax on realty.

Accepted Answer

A) True 
 B)False

Question 4

A characteristic of FUTA is that:

Accepted Answer

A) It is imposed on both employer and employee. 
B) It is imposed solely on the employee. 
C) Compliance requires following guidelines issued by both state and Federal regulatory authorities. 
D) It is applicable to spouses of employees but not to any children under age 18. 
E) None of these. 
A) It is imposed on both employer and employee. 
B) It is imposed solely on the employee. 
C) Compliance requires following guidelines issued by both state and Federal regulatory authorities. 
D) It is applicable to spouses of employees but not to any children under age 18. 
E) None of these.

Question 5

When a state decouples from a Federal tax provision, it means that this provision will not apply for state income tax purposes.

Accepted Answer

A) True 
 B)False

Question 6

Various tax provisions encourage the creation of certain types of retirement plans.Such provisions can be justified on both economic and social grounds.

Accepted Answer

A) True 
 B)False

Question 7

Using the choices provided below, show the justification for each provision of the tax law listed.
a.Economic considerations
b.Social considerations 
c.Equity considerations 
d.Both a.and b.
-A bribe to the local sheriff, although business related, is not deductible.

Accepted Answer

The answer of Using the choices provided below, show the...

Question 8

Ultimately, most taxes are paid by individuals.

Accepted Answer

A) True 
 B)False

Question 9

In cases of doubt, courts have held that tax relief provisions should be broadly construed in favor of taxpayers.

Accepted Answer

A) True 
 B)False

Question 10

Currently, the Federal corporate income tax is less progressive than the individual income tax.

Accepted Answer

A) True 
 B)False

Question 11

The tax law contains various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain additional education.On what grounds can these provisions be justified?

Accepted Answer

Social and economic considerat

Question 12

The Federal income tax is based on a pay-as-you-go system and has become a "mass tax." Explain this statement.

Accepted Answer

The pay-as-you-go system is present in t

Question 13

For state income tax purposes, a majority of states allow a deduction for Federal income taxes.

Accepted Answer

A) True 
 B)False

Question 14

An inheritance tax is a tax on a decedent's right to pass property at death.

Accepted Answer

A) True 
 B)False

Question 15

The value added tax (VAT) has not had wide acceptance in the international community.

Accepted Answer

A) True 
 B)False

Question 16

When Congress enacts a tax cut that is phased in over a period of years, revenue neutrality is achieved.

Accepted Answer

A) True 
 B)False

Question 17

Taxes levied by all states include:

Accepted Answer

A) Tobacco excise tax. 
B) Individual income tax. 
C) Inheritance tax. 
D) General sales tax. 
E) None of these. 
A) Tobacco excise tax. 
B) Individual income tax. 
C) Inheritance tax. 
D) General sales tax. 
E) None of these.

Question 18

The tax law allows, under certain conditions, deferral of gain recognition for involuntary conversions.
a.By recognizing that the taxpayer's relative economic situation has not changed and that he or she lacks the wherewithal to pay a tax, any recognition of realized
a.What is the justification for this relief measure?
b.What happens if the proceeds are not entirely reinvested?

Accepted Answer

gain is deferred.
b.If the proceeds from

Question 19

Paige is the sole shareholder of Citron Corporation.During the year, she leases a building to Citron for a monthly rental of $80,000.If the fair rental value of the building is $60,000, what are the income tax consequences to the parties involved?

Accepted Answer

The rent charged by Paige is not "arms l

Question 20

As a matter of administrative convenience, the IRS would prefer to have Congress decrease (rather than increase) the amount of the standard deduction allowed to individual taxpayers.

Accepted Answer

A) True 
 B)False

Ultimately, most taxes are paid by individuals.Explain what this means in terms of income and payroll taxes paid by a corporation.

The formula for the Federal income tax on corporations is the same as that applicable to individuals.

A fixture will be subject to the ad valorem tax on personalty rather than the ad valorem tax on realty.

A characteristic of FUTA is that:

When a state decouples from a Federal tax provision, it means that this provision will not apply for state income tax purposes.

Various tax provisions encourage the creation of certain types of retirement plans.Such provisions can be justified on both economic and social grounds.

Using the choices provided below, show the justification for each provision of the tax law listed. a.Economic considerations b.Social considerations c.Equity considerations d.Both a.and b. -A bribe to the local sheriff, although business related, is not deductible.

Ultimately, most taxes are paid by individuals.

In cases of doubt, courts have held that tax relief provisions should be broadly construed in favor of taxpayers.

Currently, the Federal corporate income tax is less progressive than the individual income tax.

The tax law contains various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain additional education.On what grounds can these provisions be justified?

The Federal income tax is based on a pay-as-you-go system and has become a "mass tax." Explain this statement.

For state income tax purposes, a majority of states allow a deduction for Federal income taxes.

An inheritance tax is a tax on a decedent's right to pass property at death.

The value added tax (VAT) has not had wide acceptance in the international community.

When Congress enacts a tax cut that is phased in over a period of years, revenue neutrality is achieved.

Taxes levied by all states include:

Paige is the sole shareholder of Citron Corporation.During the year, she leases a building to Citron for a monthly rental of $80,000.If the fair rental value of the building is $60,000, what are the income tax consequences to the parties involved?

As a matter of administrative convenience, the IRS would prefer to have Congress decrease (rather than increase) the amount of the standard deduction allowed to individual taxpayers.

Working With the Tax Law

Taxes on the Financial Statements

Gross Income

Business Deductions

Losses and Loss Limitations

Property Transactions: Basis, Gain and Loss, and Nontaxable Exchanges

Property Transactions: Capital Gains and Losses, Section 1231, and Recapture Provisions

Individuals As the Taxpayer

Individuals: Income, Deductions, and Credits

Individuals As Employees and Proprietors

Corporations: Organization, Capital Structure, and Operating Rules

Corporations: Earnings and Profits and Distributions

Partnerships and Limited Liability Entities

S Corporations

Multijurisdictional Taxation

Business Tax Credits and the Alternative Minimum Tax

Comparative Forms of Doing Business

Filters

Exam 1: Introduction to Taxation

Ultimately, most taxes are paid by individuals.Explain what this means in terms of income and payroll taxes paid by a corporation.

The formula for the Federal income tax on corporations is the same as that applicable to individuals.

A fixture will be subject to the ad valorem tax on personalty rather than the ad valorem tax on realty.

A characteristic of FUTA is that:

When a state decouples from a Federal tax provision, it means that this provision will not apply for state income tax purposes.

Various tax provisions encourage the creation of certain types of retirement plans.Such provisions can be justified on both economic and social grounds.

Using the choices provided below, show the justification for each provision of the tax law listed. a.Economic considerations b.Social considerations c.Equity considerations d.Both a.and b. -A bribe to the local sheriff, although business related, is not deductible.

Ultimately, most taxes are paid by individuals.

In cases of doubt, courts have held that tax relief provisions should be broadly construed in favor of taxpayers.

Currently, the Federal corporate income tax is less progressive than the individual income tax.

The tax law contains various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain additional education.On what grounds can these provisions be justified?

The Federal income tax is based on a pay-as-you-go system and has become a "mass tax." Explain this statement.

For state income tax purposes, a majority of states allow a deduction for Federal income taxes.

An inheritance tax is a tax on a decedent's right to pass property at death.

The value added tax (VAT) has not had wide acceptance in the international community.

When Congress enacts a tax cut that is phased in over a period of years, revenue neutrality is achieved.

Taxes levied by all states include:

Paige is the sole shareholder of Citron Corporation.During the year, she leases a building to Citron for a monthly rental of $80,000.If the fair rental value of the building is $60,000, what are the income tax consequences to the parties involved?

As a matter of administrative convenience, the IRS would prefer to have Congress decrease (rather than increase) the amount of the standard deduction allowed to individual taxpayers.

Working With the Tax Law

Taxes on the Financial Statements

Gross Income

Business Deductions

Losses and Loss Limitations

Property Transactions: Basis, Gain and Loss, and Nontaxable Exchanges

Property Transactions: Capital Gains and Losses, Section 1231, and Recapture Provisions

Individuals As the Taxpayer

Individuals: Income, Deductions, and Credits

Individuals As Employees and Proprietors

Corporations: Organization, Capital Structure, and Operating Rules

Corporations: Earnings and Profits and Distributions

Partnerships and Limited Liability Entities

S Corporations

Multijurisdictional Taxation

Business Tax Credits and the Alternative Minimum Tax

Comparative Forms of Doing Business

Filters