Question 1

The main difficulty in calculating an income tax is determining the correct amount of the tax base.

Accepted Answer

A) True 
 B)False

Question 2

Marc,a single taxpayer,earns $60,000 in taxable income and $5,000 in interest from an investment in city of Birmingham Bonds.Using the U.S.tax rate schedule for year 2018,how much federal tax will he owe? (Use tax rate schedule)

Accepted Answer

A) $13,200.00 
B) $10,239.50 
C) $9,139.50 
D) $4,453.50 
E) None of the choices are correct 
A) $13,200.00 
B) $10,239.50 
C) $9,139.50 
D) $4,453.50 
E) None of the choices are correct

Question 3

Which of the following statements is true?

Accepted Answer

A) Municipal bond interest is subject to explicit federal tax. 
B) Municipal bond interest is subject to implicit tax. 
C) Municipal bonds typically pay a higher interest rate than corporate bonds with similar risk. 
D) All of these statements are true. 
E) None of these statements is true. 
A) Municipal bond interest is subject to explicit federal tax. 
B) Municipal bond interest is subject to implicit tax. 
C) Municipal bonds typically pay a higher interest rate than corporate bonds with similar risk. 
D) All of these statements are true. 
E) None of these statements is true.

Question 4

Evaluate the U.S.federal tax system on the certainty and economy criteria.

Accepted Answer

Certainty means that taxpayers should be

Question 5

Employers often withhold federal income taxes directly from worker's paychecks.This is an example of which principle in practice?

Accepted Answer

A) Convenience. 
B) Certainty. 
C) Economy. 
D) Equity. 
E) None of the choices are correct. 
A) Convenience. 
B) Certainty. 
C) Economy. 
D) Equity. 
E) None of the choices are correct.

Question 6

A flat tax is an example of a graduated tax system.

Accepted Answer

A) True 
 B)False

Question 7

Margaret was issued a $150 speeding ticket.This is:

Accepted Answer

A) a tax because payment is required by law. 
B) a tax because the payment is not related to any specific benefit received from the government agency collecting the ticket. 
C) not a tax because it is considered a fine intended to punish illegal behavior. 
D) a tax because it is imposed by a government agency. 
E) not a tax because Margaret could have avoided payment if she did not speed. 
A) a tax because payment is required by law. 
B) a tax because the payment is not related to any specific benefit received from the government agency collecting the ticket. 
C) not a tax because it is considered a fine intended to punish illegal behavior. 
D) a tax because it is imposed by a government agency. 
E) not a tax because Margaret could have avoided payment if she did not speed.

Question 8

Common examples of sin taxes include the taxes imposed on airline tickets and gasoline.

Accepted Answer

A) True 
 B)False

Question 9

Nick and Jessica are married taxpayers that file married filing separately.Jessica earns $250,000 of taxable income per year.Nick earns $130,000 of taxable income per year.Using the appropriate U.S.tax rate schedule for year 2018,how much tax does each of them pay? What are their marginal and average tax rates? How much tax would they save,if any,if they filed jointly? (Round the tax rates to 2 decimal places,e.g.,.12345 as 12.35%)(Use tax rate schedule)

Accepted Answer

Nick would owe $25,489.50 and Jessica wo

Question 10

In a regressive tax rate system,the marginal tax rate will often be greater than the average tax rate.

Accepted Answer

A) True 
 B)False

Question 11

Property taxes may be imposed on both real and personal property.

Accepted Answer

A) True 
 B)False

Question 12

Eliminating the current system of withholding income taxes directly from employee paychecks would:

Accepted Answer

A) violate the convenience criterion of federal taxation. 
B) increase the rate of compliance. 
C) make collection of federal income taxes easier. 
D) All of the choices are correct. 
E) None of the choices are correct. 
A) violate the convenience criterion of federal taxation. 
B) increase the rate of compliance. 
C) make collection of federal income taxes easier. 
D) All of the choices are correct. 
E) None of the choices are correct.

Question 13

The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's taxable and nontaxable income.

Accepted Answer

A) True 
 B)False

Question 14

Bart is contemplating starting his own business.His new business would operate as a sole proprietorship and would require hiring several employees.Describe the employment-related taxes that Bart should be aware of as he starts his new business as a self-employed business owner.

Accepted Answer

Employment taxes consist of the Old Age,

Question 15

Given the following tax structure,what is the minimum tax that would need to be assessed on Dora to make the tax progressive with respect to average tax rates? What is the minimum tax that would need to be assessed on Dora to make the tax progressive with respect to effective tax rates?
 
 $\begin{array}{|l|r|r|rr|}
\hline {\text { Taxpayer }} & \text { Salary } & \text { Muni-Bond Interest } & {\text { Total Tax }} \
\hline \text { Diego } & 30,000 & 10,000 & & 1,500 \
\hline \text { Dora } & 50,000 & 5,000 & & ? ? ? \
\hline
\end{array}$

Accepted Answer

Diego's average tax rate is 5%. @#IMG-DLM& A 5% av

Question 16

In considering the "economy" criterion in evaluating tax systems,one must consider this criterion from both the taxpayer and the government's perspective.

Accepted Answer

A) True 
 B)False

Question 17

The tax base for the federal income tax is taxable income.

Accepted Answer

A) True 
 B)False

Question 18

Jonah,a single taxpayer,earns $150,000 in taxable income and $10,000 in interest from an investment in city of Denver Bonds.Using the U.S.tax rate schedule for year 2018,how much federal tax will he owe? What is his average tax rate? What is his effective tax rate? What is his current marginal tax rate? If Jonah earned an additional $40,000 of taxable income,what is his marginal tax rate on this income? (Round the tax rates to 2 decimal places,e.g.,.12345 as 12.35%)(Use tax rate schedule)

Accepted Answer

Jonah will owe $30,289.50 in federal inc

Question 19

Which of the following is false?

Accepted Answer

A) A proportional tax rate structure imposes a constant tax rate while a progressive tax rate structure imposes an increasing marginal rate related to the tax base. 
B) The average tax rate changes under a proportional tax rate structure,but it is static for a progressive tax rate system. 
C) An example of a proportional tax is the tax on gasoline. 
D) An example of a progressive tax is the federal tax on gifts. 
E) None of the choices are correct. 
A) A proportional tax rate structure imposes a constant tax rate while a progressive tax rate structure imposes an increasing marginal rate related to the tax base. 
B) The average tax rate changes under a proportional tax rate structure,but it is static for a progressive tax rate system. 
C) An example of a proportional tax is the tax on gasoline. 
D) An example of a progressive tax is the federal tax on gifts. 
E) None of the choices are correct.

Question 20

The ultimate economic burden of a tax is best captured by:

Accepted Answer

A) the marginal tax rate. 
B) the effective tax rate. 
C) the average tax rate. 
D) the proportional tax rate. 
E) None of the choices are correct. 
A) the marginal tax rate. 
B) the effective tax rate. 
C) the average tax rate. 
D) the proportional tax rate. 
E) None of the choices are correct.

The main difficulty in calculating an income tax is determining the correct amount of the tax base.

Marc,a single taxpayer,earns $60,000 in taxable income and $5,000 in interest from an investment in city of Birmingham Bonds.Using the U.S.tax rate schedule for year 2018,how much federal tax will he owe? (Use tax rate schedule)

Which of the following statements is true?

Evaluate the U.S.federal tax system on the certainty and economy criteria.

Employers often withhold federal income taxes directly from worker's paychecks.This is an example of which principle in practice?

A flat tax is an example of a graduated tax system.

Margaret was issued a $150 speeding ticket.This is:

Common examples of sin taxes include the taxes imposed on airline tickets and gasoline.

In a regressive tax rate system,the marginal tax rate will often be greater than the average tax rate.

Property taxes may be imposed on both real and personal property.

Eliminating the current system of withholding income taxes directly from employee paychecks would:

The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's taxable and nontaxable income.

Bart is contemplating starting his own business.His new business would operate as a sole proprietorship and would require hiring several employees.Describe the employment-related taxes that Bart should be aware of as he starts his new business as a self-employed business owner.

In considering the "economy" criterion in evaluating tax systems,one must consider this criterion from both the taxpayer and the government's perspective.

The tax base for the federal income tax is taxable income.

Which of the following is false?

The ultimate economic burden of a tax is best captured by:

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview dependents and Filing Status

Gross Income and Exclusions

Individual for Agi Deductions

Individual Income Tax Computation and Tax Credits

Business Income, deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Formations and Operations

Corporate Nonliquidating and Liquidating Distributions

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

Individual From Agi Deductions

Filters

Exam 1: An Introduction to Tax

The main difficulty in calculating an income tax is determining the correct amount of the tax base.

Marc,a single taxpayer,earns $60,000 in taxable income and $5,000 in interest from an investment in city of Birmingham Bonds.Using the U.S.tax rate schedule for year 2018,how much federal tax will he owe? (Use tax rate schedule)

Which of the following statements is true?

Evaluate the U.S.federal tax system on the certainty and economy criteria.

Employers often withhold federal income taxes directly from worker's paychecks.This is an example of which principle in practice?

A flat tax is an example of a graduated tax system.

Margaret was issued a $150 speeding ticket.This is:

Common examples of sin taxes include the taxes imposed on airline tickets and gasoline.

In a regressive tax rate system,the marginal tax rate will often be greater than the average tax rate.

Property taxes may be imposed on both real and personal property.

Eliminating the current system of withholding income taxes directly from employee paychecks would:

The effective tax rate expresses the taxpayer's total tax as a percentage of the taxpayer's taxable and nontaxable income.

Bart is contemplating starting his own business.His new business would operate as a sole proprietorship and would require hiring several employees.Describe the employment-related taxes that Bart should be aware of as he starts his new business as a self-employed business owner.

In considering the "economy" criterion in evaluating tax systems,one must consider this criterion from both the taxpayer and the government's perspective.

The tax base for the federal income tax is taxable income.

Which of the following is false?

The ultimate economic burden of a tax is best captured by:

Tax Compliance, the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview dependents and Filing Status

Gross Income and Exclusions

Individual for Agi Deductions

Individual Income Tax Computation and Tax Credits

Business Income, deductions, and Accounting Methods

Property Acquisition and Cost Recovery

Property Dispositions

Entities Overview

Corporate Formations and Operations

Corporate Nonliquidating and Liquidating Distributions

Forming and Operating Partnerships

Dispositions of Partnership Interests and Partnership Distributions

S Corporations

Individual From Agi Deductions

Filters