FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Introduction to Taxation

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

True/False

Review LaterAdd Note

Review Later

An excise tax is often used to try to influence behavior.

A) True
B) False

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

Social considerations can be used to justify:

A) Allowance of a credit for child care expenses.
B) Allowing excess capital losses to be carried over to other years.
C) Allowing accelerated amortization for the cost of installing pollution control facilities.
D) Allowing a Federal income tax deduction for state and local sales taxes.
E) None of these.

F) A) and B)
G) A) and C)

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

A characteristic of FICA is that:

For state income tax purposes, a majority of states allow a deduction for Federal income taxes.

What is a severance tax? How productive can it be in terms of generating revenue?

A characteristic of FUTA is that:

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

In 1987, Roy leased real estate to Drab Corporation for 20 years.Drab Corporation made significant capital improvements to the property.In 2006, Drab decides not to renew the lease and vacates the property.At that time, the value of the improvements is $800,000.Roy sells the real estate in 2018 for $1,200,000 of which $900,000 is attributable to the improvements.When is Roy taxed on the improvements made by Drab Corporation?

Which, if any, of the following is a typical characteristic of an ad valorem tax on personalty?

Under the usual state inheritance tax, two heirs, a cousin and a son of the deceased, would not be taxed at the same rate.

Like the Federal counterpart, the amount of the state excise taxes on gasoline varies from state to state.

Congress reacts to judicial decisions that interpret the tax law in different ways.When it approves of a decision, Congress may act to amend the Code to incorporate the holding.When it disapproves, Congress may amend the Code to nullify its effect.Give an example of each one of these congressional reactions.

The Federal estate and gift taxes are examples of progressive taxes.

Ultimately, most taxes are paid by individuals.Explain what this means in terms of income and payroll taxes paid by a corporation.

Taxes levied by all states include:

Two persons who live in the same state but in different counties may not be subject to the same general sales tax rate.

Currently, the Federal corporate income tax is less progressive than the individual income tax.

When a state decouples from a Federal tax provision, it means that this provision will not apply for state income tax purposes.