HW#1 Acc 40011.Taxation is intrinsically tied to which of the following?a.Scienceb.Politics and Public Policyc.Inflation Ratesd.Capex forms
2.Calculate the effective tax rate based on the following. Revenue – 18,500 Expenses – 3,500Marginal Tax Rate of income from 0-10,000 is 20% then from 10,001-20,000 is 25%3.What amount would have the best tax answer. A deduction of 50,000 or a tax credit of 6,500.The tax rate is 21%.4.What is the difference between excise tax and sales tax?5.Is the US tax system Regressive or Progressive?6.Company A earned 26,000,000 27,000,000 and 29,000,000 in 2019, 2020, and 2021 respectively.Does the taxpayer pass the Gross receipts test? (Hint: average of Prior 3 years)7.Book income is $56,000. Part of the income is composed of $450 of parking tickets. What is thetaxable income?8.What is taxable income, if the taxpayer is on cash methoda.40,000 of cash revenue earnedb.10,000 revenue earned on accrualc.4,000 Paid expense in cash
