Question 1

Indicate which,if any,statement is incorrect.State income taxes:

Accepted Answer

A)   Can piggyback to the Federal version.
B)   Cannot apply to visiting nonresidents.
C)   Can decouple from the Federal version.
D)   Can provide occasional amnesty programs.
E)   None of the above.F) A) and E)
G) A) and B)

Question 2

Allowing a domestic production activities deduction for certain manufacturing income can be justified:

Accepted Answer

A)   As mitigating the effect of the annual accounting period concept.
B)   As promoting administrative feasibility.
C)   By economic considerations.
D)   Based on the wherewithal to pay concept.
E)   None of the above.F) A) and D)
G) B) and D)

Question 3

The value added tax (VAT)has had wide acceptance in the international community.

Accepted Answer

A) True 
 B)False

Question 4

Before the Sixteenth Amendment to the Constitution was ratified,there was no valid Federal income tax on individuals.

Accepted Answer

A) True 
 B)False

Question 5

Julius,a married taxpayer,makes gifts to each of his six children.A maximum of twelve annual exclusions could be allowed as to these gifts.

Accepted Answer

A) True 
 B)False

Question 6

Taxes not imposed by the Federal government include:

Accepted Answer

A)   Tobacco excise tax.
B)   Hotel occupancy tax.
C)   Customs duties (tariffs on imports) .
D)   Gas guzzler tax.
E)   None of the above.F) B) and E)
G) None of the above

Question 7

Pam,a widow,makes cash gifts to her four married children (including their spouses)and to her six grandchildren.

Accepted Answer

The answer of Pam,a widow,makes cash gifts to her four...

Question 8

The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business use personalty.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which,if any,of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?

Accepted Answer

A)   Nonrecognition of gain allowed for involuntary conversions.
B)   Net operating loss carryback and carryover provisions.
C)   Carry over of excess charitable contributions.
D)   Use of the installment method to recognize gain.
E)   Carry over of excess capital losses.F) A) and B)
G) C) and D)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

What are the pros and cons of the following state and local tax provisions?

Accepted Answer

The answer of What are the pros and cons of...

Question 14

With regard to state income taxes,explain what is meant by the "jock tax"?

Accepted Answer

Although states have a right to levy an ...

Question 15

A Federal excise tax is still imposed on admission to theaters.

Accepted Answer

A) True 
 B)False

Exam 1: An Introduction to Taxation and Understanding the Federal Tax Law

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

Correct Answer
verified

Julius,a married taxpayer,makes gifts to each of his six children.A maximum of twelve annual exclusions could be allowed as to these gifts.

Correct Answer
verified

With regard to state income taxes,explain what is meant by the "jock tax"?

Correct Answer
verified
Although states have a right to levy an ...
View Answer

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

Correct Answer
verified

The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business use personalty.

Correct Answer
verified

Taxes not imposed by the Federal government include:

Correct Answer
verified

Pam,a widow,makes cash gifts to her four married children (including their spouses)and to her six grandchildren.

Correct Answer
verified

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?

Correct Answer
verified
Social and economic considerat...
View Answer

Allowing a domestic production activities deduction for certain manufacturing income can be justified:

Correct Answer
verified

A Federal excise tax is still imposed on admission to theaters.

Correct Answer
verified

The value added tax (VAT)has had wide acceptance in the international community.

Correct Answer
verified

Which,if any,of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?

Correct Answer
verified

Before the Sixteenth Amendment to the Constitution was ratified,there was no valid Federal income tax on individuals.

Correct Answer
verified

What are the pros and cons of the following state and local tax provisions?

Correct Answer
verified

Indicate which,if any,statement is incorrect.State income taxes:

Correct Answer
verified

Exam 1: An Introduction to Taxation and Understanding the Federal Tax Law

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

Correct AnswerverifiedShow Answer

Julius,a married taxpayer,makes gifts to each of his six children.A maximum of twelve annual exclusions could be allowed as to these gifts.

Correct AnswerverifiedShow Answer

With regard to state income taxes,explain what is meant by the "jock tax"?

Correct AnswerverifiedAlthough states have a right to levy an ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business use personalty.

Correct AnswerverifiedShow Answer

Taxes not imposed by the Federal government include:

Correct AnswerverifiedShow Answer

Pam,a widow,makes cash gifts to her four married children (including their spouses)and to her six grandchildren.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedSocial and economic considerat...View AnswerShow Answer

Allowing a domestic production activities deduction for certain manufacturing income can be justified:

Correct AnswerverifiedShow Answer

A Federal excise tax is still imposed on admission to theaters.

Correct AnswerverifiedShow Answer

The value added tax (VAT)has had wide acceptance in the international community.

Correct AnswerverifiedShow Answer

Which,if any,of the following provisions cannot be justified as mitigating the effect of the annual accounting period concept?

Correct AnswerverifiedShow Answer

Before the Sixteenth Amendment to the Constitution was ratified,there was no valid Federal income tax on individuals.

Correct AnswerverifiedShow Answer

What are the pros and cons of the following state and local tax provisions?

Correct AnswerverifiedShow Answer

Indicate which,if any,statement is incorrect.State income taxes:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Although states have a right to levy an ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Social and economic considerat...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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