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Discussion Question 2-3 (LO. 1)Answer the following question regarding Federal tax legislation.Where does Federal tax legislation generally originate?Complete the following statements regarding the legislative process.Tax Drill - Process for Tax BillIndicate whether the following statements are "True" or "False" regarding the legislative process.a. When the Senate version of the bill differs from that passed by the House, the President resolves these differences.b. Assuming no disagreement between the House and the Senate, a bill passed by the Senate is referred to the President for approval or veto.c. Joint Conference Committee Reports often explain the provisions of the proposed legislation and are therefore a valuable source in ascertaining the intent of Congress.Discussion Question 2-1 (LO. 1)Complete the following statement regarding tax research.A large part of tax research consists of determining the intent of Congress Discussion Question 2-2 (LO. 1)Select "True" or "False" to identify some reasons why taxpayers often have more than one alternative for structuring a business transaction.a.Tax law contains many "gray" areas that are open to interpretation.The complexity of the tax laws makes it difficult at times to determine the correct treatment.c.The possibility of different interpretations of the tax law allows for different treatments.d.The simplicity of the Federal tax law makes it easier to come up with different treatments.Tax Drill - Capital AssetsIndicate whether the following assets are capital assets.b. Real estate used in a businessc. Personal residenced. Stock held for investmentTax Drill - Capital Gain Tax RatesIndicate the maximum tax rate for the following types of capital gains.a. Short-term gains (held for less than one year)b. Capital gains associated with certain depreciable property used in trade or business (held for more than one year)