Chapter 1 HW Solutions

Chapter 1 HW Solutions - Chapter 1 Homework Solutions 6 As...

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Chapter 1 – Homework Solutions 6. As to Adam Smith’s canon on economy , the Federal income tax yields a mixed result. From the standpoint of the IRS, economy is there as its collection costs are nominal (when compared to revenue generated). Economy is not present, however, if one looks to the compliance effort and costs expended by taxpayers. p. 1-5 7. a. Regressive. (book answer is Proportional) b. Progressive. c. Proportional. d. Progressive. p. 1-6 and Examples 1 and 2 11. Probably what has happened is that the appraised value of the residence has been raised. Unfortunately, there is often a time lag in the appraisal process, and the taxing authority has not yet taken into account any recent changes in value. See Tax in the News item on p. 1-8. 23. a. The determination of AGI is not necessary for corporations. b. Only individual taxpayers need to make a choice between the standard deduction and itemizing their deductions from AGI. c.
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This note was uploaded on 05/30/2011 for the course ACCT 421 taught by Professor May during the Spring '11 term at IPR.

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Chapter 1 HW Solutions - Chapter 1 Homework Solutions 6 As...

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