Question 1

Which of the following would not be a failure of the horizontal equity concept?

Accepted Answer

A)  Two taxpayers with identical income pay different amounts of tax because one taxpayer's income includes tax exempt interest. 
B)  Two taxpayers pay different amounts of property tax amounts on similar plots of land (i.e., same value) because one plot of land is used to raise crops. 
C)  Two taxpayers pay different amounts of estate tax because one taxpayer's estate is worth significantly more. 
D)  All of these. 
E)  None of these. 
A)  Two taxpayers with identical income pay different amounts of tax because one taxpayer's income includes tax exempt interest. 
B)  Two taxpayers pay different amounts of property tax amounts on similar plots of land (i.e., same value) because one plot of land is used to raise crops. 
C)  Two taxpayers pay different amounts of estate tax because one taxpayer's estate is worth significantly more. 
D)  All of these. 
E)  None of these.

Question 2

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 2016, 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%)

Accepted Answer

Nick would owe $30,606.50 and Jessica wo

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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 these is correct 
A)  The marginal tax rate 
B)  The effective tax rate 
C)  The average tax rate 
D)  The proportional tax rate 
E)  None of these is correct

Question 5

In addition to raising revenues, specific U.S. taxes may have other objectives (e.g., economic or social objectives).

Accepted Answer

A) True 
 B)False

Question 6

Leonardo earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income. How much money would Leonardo and Theresa save if they file jointly instead of separately for year 2016?

Accepted Answer

A)  Nothing 
B)  $121.50 
C)  $309.75 
D)  $5,927.50 
E)  None of these 
A)  Nothing 
B)  $121.50 
C)  $309.75 
D)  $5,927.50 
E)  None of these

Question 7

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 8

Namratha has the choice between investing in a city of Watkinsville bond at 4.5% or a Moe's, Inc. bond at 7%. Assuming that both bonds have the same non-tax characteristics and that Namratha has a 25% marginal tax rate, in which bond should she invest? What interest rate offered by Moe's, Inc. would make Namratha indifferent between investing in the two bonds?

Accepted Answer

Namratha's after tax rate of return on t

Question 9

Implicit taxes are indirect taxes on tax-favored assets.

Accepted Answer

A) True 
 B)False

Question 10

For each of the following, determine if each is a tax and why or why not.
a. $2.50 toll paid on the Florida Turnpike
b. $300 ticket for reckless driving
c. 1% local surcharge on hotel rooms to fund public roadways
d. 2% city surcharge on wages earned in the city of Philadelphia

Accepted Answer

a. Not a tax because receiving a specifi

Which of the following would not be a failure of the horizontal equity concept?

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

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

In addition to raising revenues, specific U.S. taxes may have other objectives (e.g., economic or social objectives).

Leonardo earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income. How much money would Leonardo and Theresa save if they file jointly instead of separately for year 2016?

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.

Implicit taxes are indirect taxes on tax-favored assets.

For each of the following, determine if each is a tax and why or why not. a. $2.50 toll paid on the Florida Turnpike b. $300 ticket for reckless driving c. 1% local surcharge on hotel rooms to fund public roadways d. 2% city surcharge on wages earned in the city of Philadelphia

Tax Compliance , the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Individual for Agi Deductions

Individual From 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

Filters

Exam 1: An Introduction to Tax

Which of the following would not be a failure of the horizontal equity concept?

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

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

In addition to raising revenues, specific U.S. taxes may have other objectives (e.g., economic or social objectives).

Leonardo earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income. How much money would Leonardo and Theresa save if they file jointly instead of separately for year 2016?

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.

Implicit taxes are indirect taxes on tax-favored assets.

For each of the following, determine if each is a tax and why or why not. a. $2.50 toll paid on the Florida Turnpike b. $300 ticket for reckless driving c. 1% local surcharge on hotel rooms to fund public roadways d. 2% city surcharge on wages earned in the city of Philadelphia

Tax Compliance , the Irs, and Tax Authorities

Tax Planning Strategies and Related Limitations

Individual Income Tax Overview, Exemptions, and Filing Status

Gross Income and Exclusions

Individual for Agi Deductions

Individual From 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

Filters