T12S-Chp-01-2-HW-Prb-2012

T12S-Chp-01-2-HW-Prb-2012 - Page 1 of 3 Name Homework for...

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69b35591ebf2094e18f8e2048d162eb908d09d89.doc. Page 1 of 3 Name: Homework for Chapter 1. W ork these problem and check your answers. The homework will not be collected. Use the tax law and tax rates for 2011 (not 2012), even if the problem has 2012 dates. Many law changes may be made in 2012, so we don’t know what tax law or tax rates will apply for 2012. Part 1. Definition and evaluation of a tax. Rate structures. 1 Which of the following is not a tax? a. Amount added to price of gasoline to cover cost of building and repairing highways b. Taxes added to cost of buying everyday items in retail stores c. Citation received for speeding on highways d. Taxes paid on value of home 2 Which of the following is not included among Adam Smith's criteria for evaluating a tax? a. Convenience. b. Equality. c. Neutrality d. Economy. e. Certainty 3 When planning for an investment that will extend over several years, the ability to predict how the results of the investment will be taxed is important. This statement is an example of a. Convenience. b. Equality. c. Neutrality d. Economy. e. Certainty 4 The concept of diminishing marginal utility is associated with: a. Horizontal equity b. Vertical equity c. Both d. Neither 5 In class, we worked a problem for Sam and Sue. Both are single, claim one exemption and have itemized deductions of $20,000.We computed Sam’s income tax assuming his salary was $70,000. Then we computed Sue’s tax assuming her salary was $120,000. When we compare the tax for Sam and Sue, our analysis is associated with: a. Horizontal equity b. Vertical equity c. Both d. Neither 6 Sue who is single, claims one exemption and has itemized deductions of $7,000. She had no deduction for AGI. Compute her income tax for 2011 assuming her salary was $100,000. What is her average tax rate, using this information (use closest answer)? a. 21.3% b. 20.85% c. 25% d. 16% 7 If a taxpayer has a choice of receiving income in the current year versus the following year, which of the following tax rates is important in determining the year in which he should include the income? a.
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This note was uploaded on 03/09/2012 for the course ACCT 4220 taught by Professor Burton during the Spring '08 term at UNC Charlotte.

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T12S-Chp-01-2-HW-Prb-2012 - Page 1 of 3 Name Homework for...

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