tax quiz 1 - Chapter 1 Quiz Due Aug 30 Review of attempt 1...

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Chapter 1 Quiz Due Aug 30 Review of attempt 1 Started on Monday, August 29, 2011, 08:48 PM Completed on Tuesday, August 30, 2011, 12:05 PM Time taken 15 hours 17 mins Grade 8 out of a maximum of 10 ( 80 %) Question 1 Marks: 1 The doctrine of separation of powers refers to the relationship between the Internal Revenue Service and the Treasury Department. Answer: True False Incorrect Marks for this submission: 0/1. Question 2 Marks: 1 The value-added tax is an example of an indirect tax that is similar to sales taxes. Answer: True False Correct Marks for this submission: 1/1. Question 3 Marks: 1 The art of using existing tax laws to pay the least amount of tax legally possible is known as: Choose one answer. a. tax evasion.
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b. tax avoidance. c. tax elusion. d. None of the above. Tax planning is using existing laws to pay the least amount of tax. Correct Marks for this submission: 1/1. Question 4 Marks: 1 Property taxes are a major source of revenue for the federal government. Answer: True False For local governments. Correct Marks for this submission: 1/1. Question 5 Marks: 1 Stamps purchased to enable postal delivery services are an example of user fees. Answer: True False Correct Marks for this submission: 1/1. Question 6 Marks: 1 Most state and local property taxes use a single tax rate, making them a type of ad valorem tax. Answer: True False This would not be an example of an ad valorem tax but a proportional tax. Correct Marks for this submission: 1/1. Question 7 Marks: 1 Since 1913, changes in the tax laws have always increased individual tax rates, never decreased them.
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Answer: True False No, several tax reform acts decreased tax rates. Correct Marks for this submission: 1/1. Question 8 Marks: 1 Flow-through entities do not pay tax on taxable income, so it is not necessary for them to keep track of their gross income. Answer: True False They are conduits and the income they generate is taxed to the individual partners. Correct Marks for this submission: 1/1. Question 9 Marks: 1 The majority of dollars collected by the U.S. government come by way of corporate taxation. Answer: True False Individuals contribute the majority of dollars. Correct Marks for this submission: 1/1. Question 10 Marks: 1 The Revenue Reconciliation Act of 1998 imposed the following: Choose one answer. a. Raised from two to three the number of statutory rates. b. Lowered the holding period for long-term capital gains from 18 to 12 months. c. Imposed a maximum capital gains rate of 28 percent. d. Reduced spending by $40 million.
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The holding period for the lowest capital gain rate has been reduced from 18 to 12 months. Incorrect Marks for this submission: 0/1. Chapter 1 Quiz Due Aug 30 Review of attempt 2 Started on Tuesday, August 30, 2011, 12:05 PM Completed on Tuesday, August 30, 2011, 12:15 PM Time taken 10 mins 3 secs Grade 8 out of a maximum of 10 ( 80 %) Question 1 Marks: 1 Property taxes are a major source of revenue for the federal government. Answer:
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tax quiz 1 - Chapter 1 Quiz Due Aug 30 Review of attempt 1...

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