Question 1

Which, if any, of the following statements best describes the history of the Federal income tax?

Accepted Answer

A)   It did not exist during the Civil War.
B)   The Federal income tax on corporations was held by the U.S. Supreme Court to be allowable under the U.S. Constitution.
C)   The Federal income tax on individuals was held by the U.S. Supreme Court to be allowable under the U.S. Constitution.
D)   Both the Federal income tax on individuals and on corporations was held by the U.S. Supreme Court to be contrary to the U.S. Constitution.
E)   None of these.F) A) and B)
G) A) and D)

Question 2

States impose either a state income tax or a general sales tax, but not both types of taxes.

Accepted Answer

A) True 
 B)False

Question 3

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all.
-Wherewithal to pay concept

Accepted Answer

A)  Deferral of gains from involuntary conversions
B)  Carryforward of net operating losses
C)  "No change" is one possible result
D)  State income tax applied to visiting nonresident
E)  IRS special agentF) Undoing the "piggyback" resultG) Ideal budget goal as to new tax legislationH) Every state that has a general sales tax has oneI) Imposed by all states and the Federal governmentJ) Imposed by some states but not the Federal governmentK) Imposed only by the Federal governmentL) No correct match providedM) B) and C)
N) B) and K)

Question 4

To lessen, or eliminate, the effect of multiple taxation, a taxpayer who is subject to both foreign and U.S. income taxes on the same income is allowed either a deduction or a credit for the foreign tax paid.

Accepted Answer

A) True 
 B)False

Question 5

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all.
-Import taxes (customs duties)

Accepted Answer

A)  Deferral of gains from involuntary conversions
B)  Carryforward of net operating losses
C)  "No change" is one possible result
D)  State income tax applied to visiting nonresident
E)  IRS special agentF) Undoing the "piggyback" resultG) Ideal budget goal as to new tax legislationH) Every state that has a general sales tax has oneI) Imposed by all states and the Federal governmentJ) Imposed by some states but not the Federal governmentK) Imposed only by the Federal governmentL) No correct match providedM) H) and K)
N) B) and C)

Question 6

In 2018, José, a widower, sells land (fair market value of $100,000) to his daughter, Linda, for $50,000. José has not made a taxable gift.

Accepted Answer

A) True 
 B)False

Question 7

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all.
-Decoupling
A)Deferral of gains from involuntary conversions
B)Carryforward of net operating losses
C)"No change" is one possible result
D)State income tax applied to visiting nonresident
E)IRS special agent
F)Undoing the "piggyback" result
G)Ideal budget goal as to new tax legislation
H)Every state that has a general sales tax has one
I)Imposed by all states and the Federal government
J)Imposed by some states but not the Federal government
K)Imposed only by the Federal government
L)No correct match provided

Accepted Answer

The answer of Match the statements that relate to each...

Question 8

The annual exclusion, currently $15,000, is available for gift and estate tax purposes.

Accepted Answer

A) True 
 B)False

Question 9

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all.
-"Pay-as-you-go" (paygo)

Accepted Answer

A)  Deferral of gains from involuntary conversions
B)  Carryforward of net operating losses
C)  "No change" is one possible result
D)  State income tax applied to visiting nonresident
E)  IRS special agentF) Undoing the "piggyback" resultG) Ideal budget goal as to new tax legislationH) Every state that has a general sales tax has oneI) Imposed by all states and the Federal governmentJ) Imposed by some states but not the Federal governmentK) Imposed only by the Federal governmentL) No correct match providedM) B) and L)
N) H) and L)

Question 10

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all.
-Revenue neutrality

Accepted Answer

A)  Deferral of gains from involuntary conversions
B)  Carryforward of net operating losses
C)  "No change" is one possible result
D)  State income tax applied to visiting nonresident
E)  IRS special agentF) Undoing the "piggyback" resultG) Ideal budget goal as to new tax legislationH) Every state that has a general sales tax has oneI) Imposed by all states and the Federal governmentJ) Imposed by some states but not the Federal governmentK) Imposed only by the Federal governmentL) No correct match providedM) A) and E)
N) A) and B)

Question 11

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 these.F) A) and B)
G) A) and C)

Question 12

Taxes not imposed by the Federal government include:

Accepted Answer

A)   Tobacco excise tax.
B)   Customs duties (tariffs on imports) .
C)   Tax on rental cars.
D)   Gas guzzler tax.
E)   None of these.F) All of the above
G) A) and B)

Question 13

A rationale for the installment method tax rule is:

Accepted Answer

A)   Ability to pay.
B)   Equity and fairness.
C)   Simplicity.
D)   Revenue neutrality.E) None of the above
F) A) and B)

Question 14

A provision in the law that compels accrual basis taxpayers to pay a tax on prepaid income in the year received and not when earned is consistent with generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 15

A VAT (value added tax) :

Accepted Answer

A)   Is regressive in its effect.
B)   Has not proved popular outside of the U.S.
C)   Is not a tax on consumption.
D)   Is used exclusively by third world (less developed)  countries.
E)   None of these.F) A) and D)
G) B) and E)

Question 16

Due to the population change, the Goose Creek School District has decided to close one of its high schools. Since it has no further need of the property, the school is listed for sale. The two bids it receives are as follows:
  
The United Methodist Church would use the property to establish a sectarian middle school. Planet, a well-known car dealership, would revamp the property and operate it as a branch location.
If you were a member of the School District board, what factors would you consider in evaluating the two bids?

Accepted Answer

Although the bid from the United Methodi...

Question 17

The principal objective of the FUTA tax is to provide some measure of retirement security.

Accepted Answer

A) True 
 B)False

Question 18

David files his tax return 45 days after the due date. Along with the return, David remits a check for $40,000 which is the balance of the tax owed. Disregarding the interest element, David's total failure to file and to pay penalties are:

Accepted Answer

A)   $400.
B)   $3,600.
C)   $4,000.
D)   $4,400.
E)   None of these.F) A) and B)
G) B) and D)

Question 19

The U.S. (either Federal, state, or local)  does not impose:

Accepted Answer

A)   Franchise taxes.
B)   Severance taxes.
C)   Occupational fees.
D)   Custom duties.
E)   Export duties.F) A) and C)
G) B) and E)

Question 20

Because the law is complicated, most individual taxpayers are not able to complete their Federal income tax returns without outside assistance.

Accepted Answer

A) True 
 B)False

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

The annual exclusion, currently $15,000, is available for gift and estate tax purposes.

Correct Answer
verified

States impose either a state income tax or a general sales tax, but not both types of taxes.

Correct Answer
verified

A provision in the law that compels accrual basis taxpayers to pay a tax on prepaid income in the year received and not when earned is consistent with generally accepted accounting principles.

Correct Answer
verified

To lessen, or eliminate, the effect of multiple taxation, a taxpayer who is subject to both foreign and U.S. income taxes on the same income is allowed either a deduction or a credit for the foreign tax paid.

Correct Answer
verified

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -Import taxes (customs duties)

Correct Answer
verified

Correct Answer
verified
Although the bid from the United Methodi...
View Answer

Because the law is complicated, most individual taxpayers are not able to complete their Federal income tax returns without outside assistance.

Correct Answer
verified

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -Wherewithal to pay concept

Correct Answer
verified

In 2018, José, a widower, sells land (fair market value of $100,000) to his daughter, Linda, for $50,000. José has not made a taxable gift.

Correct Answer
verified

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

Correct Answer
verified

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -"Pay-as-you-go" (paygo)

Correct Answer
verified

The U.S. (either Federal, state, or local) does not impose:

Correct Answer
verified

Correct Answer
verified

The principal objective of the FUTA tax is to provide some measure of retirement security.

Correct Answer
verified

Taxes not imposed by the Federal government include:

Correct Answer
verified

A VAT (value added tax) :

Correct Answer
verified

David files his tax return 45 days after the due date. Along with the return, David remits a check for $40,000 which is the balance of the tax owed. Disregarding the interest element, David's total failure to file and to pay penalties are:

Correct Answer
verified

Which, if any, of the following statements best describes the history of the Federal income tax?

Correct Answer
verified

A rationale for the installment method tax rule is:

Correct Answer
verified

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -Revenue neutrality

Correct Answer
verified

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

The annual exclusion, currently $15,000, is available for gift and estate tax purposes.

Correct AnswerverifiedShow Answer

States impose either a state income tax or a general sales tax, but not both types of taxes.

Correct AnswerverifiedShow Answer

A provision in the law that compels accrual basis taxpayers to pay a tax on prepaid income in the year received and not when earned is consistent with generally accepted accounting principles.

Correct AnswerverifiedShow Answer

To lessen, or eliminate, the effect of multiple taxation, a taxpayer who is subject to both foreign and U.S. income taxes on the same income is allowed either a deduction or a credit for the foreign tax paid.

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -Import taxes (customs duties)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedAlthough the bid from the United Methodi...View AnswerShow Answer

Because the law is complicated, most individual taxpayers are not able to complete their Federal income tax returns without outside assistance.

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -Wherewithal to pay concept

Correct AnswerverifiedShow Answer

In 2018, José, a widower, sells land (fair market value of $100,000) to his daughter, Linda, for $50,000. José has not made a taxable gift.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -"Pay-as-you-go" (paygo)

Correct AnswerverifiedShow Answer

The U.S. (either Federal, state, or local) does not impose:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The principal objective of the FUTA tax is to provide some measure of retirement security.

Correct AnswerverifiedShow Answer

Taxes not imposed by the Federal government include:

Correct AnswerverifiedShow Answer

A VAT (value added tax) :

Correct AnswerverifiedShow Answer

David files his tax return 45 days after the due date. Along with the return, David remits a check for $40,000 which is the balance of the tax owed. Disregarding the interest element, David's total failure to file and to pay penalties are:

Correct AnswerverifiedShow Answer

Which, if any, of the following statements best describes the history of the Federal income tax?

Correct AnswerverifiedShow Answer

A rationale for the installment method tax rule is:

Correct AnswerverifiedShow Answer

Match the statements that relate to each other. Note: Some choices may be used more than once or not at all. -Revenue neutrality

Correct AnswerverifiedShow Answer

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Although the bid from the United Methodi...
View Answer

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