Question 1

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.
-More rapid expensing for tax purposes of the costs of installing pollution control devices.

Accepted Answer

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

Question 2

In 1988, Roy leased real estate to Drab Corporation for 20 years.Drab Corporation made significant capital improvements to the property.In 2007, Drab decided not to renew the lease and vacated the property.At that time, the value of the improvements was $800,000.Roy sells the real estate in 2019 for $1,200,000 of which $900,000 is attributable to the improvements.When is Roy taxed on the improvements made by Drab Corporation?

Accepted Answer

The answer of In 1988, Roy leased real estate to...

Question 3

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.
-Tax credits for home improvements that conserve energy.

Accepted Answer

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

Question 4

Which of the following taxes is paid only by the employer?
A)FICA
B)FUTA
C)Social Security tax
D)Medicare tax

Accepted Answer

FUTA (Federal Unemployment Tax Act) is paid only by the employer. FICA (Federal Insurance Contributions Act) includes Social Security tax and Medicare tax, which are paid by both the employer and employee.

Question 5

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 deduction for interest on student loans.

Accepted Answer

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

Question 6

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.
-Tax brackets are increased for inflation.

Accepted Answer

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

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.
-Tax credits available for the purchase of a vehicle that uses alternative (non-fossil) fuels.

Accepted Answer

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

Question 8

Taylor, a widow, makes cash gifts to her five married children (including their spouses) and to her seven grandchildren.What is the maximum amount Taylor can give for calendar year 2019 without using her unified transfer tax credit?

Accepted Answer

The answer of Taylor, a widow, makes cash gifts to...

Question 9

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 Federal deduction for state and local sales taxes paid.

Accepted Answer

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

Question 10

A rationale for the installment sale method tax rule is:
A)Ability to pay.
B)Equity and fairness.
C)Simplicity.
D)Revenue neutrality.

Accepted Answer

The answer of A rationale for the installment sale method...

Question 11

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 Federal deduction for state and local income taxes paid.

Accepted Answer

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

Question 12

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 deduction for contributions by an employee to certain retirement plans.

Accepted Answer

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

Question 13

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 deduction for qualified tuition paid to obtain higher education.

Accepted Answer

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

Question 14

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 deduction for certain expenses (interest and taxes) incident to home ownership.

Accepted Answer

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

Question 15

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 small business corporation can elect to avoid the corporate income tax.

Accepted Answer

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

Question 16

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 tax credit for amounts spent to furnish care for children while the parent is at work.

Accepted Answer

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

Question 17

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 answer of Paige is the sole shareholder of Citron...

Question 18

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.
-Additional depreciation deduction allowed for the year the asset is acquired.

Accepted Answer

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

Question 19

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.
-Contributions to charitable organizations are deductible.

Accepted Answer

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

Question 20

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...

Quiz 1: Introduction to Taxation

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. -More rapid expensing for tax purposes of the costs of installing pollution control devices.

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. -Tax credits for home improvements that conserve energy.

Which of the following taxes is paid only by the employer?

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 deduction for interest on student loans.

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. -Tax brackets are increased for inflation.

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. -Tax credits available for the purchase of a vehicle that uses alternative (non-fossil) fuels.

Taylor, a widow, makes cash gifts to her five married children (including their spouses) and to her seven grandchildren.What is the maximum amount Taylor can give for calendar year 2019 without using her unified transfer tax credit?

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 Federal deduction for state and local sales taxes paid.

A rationale for the installment sale method tax rule is:

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 Federal deduction for state and local income taxes paid.

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 deduction for contributions by an employee to certain retirement plans.

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 deduction for qualified tuition paid to obtain higher education.

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 deduction for certain expenses (interest and taxes) incident to home ownership.

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 small business corporation can elect to avoid the corporate income tax.

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 tax credit for amounts spent to furnish care for children while the parent is at work.

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?

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. -Additional depreciation deduction allowed for the year the asset is acquired.

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. -Contributions to charitable organizations are deductible.

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.