PROBLEM MATERIALS
DISCUSSION QUESTIONS
1. 2. 3. What states do not impose a sales tax? What is a use tax? Who is responsible for collecting and remitting use taxes to the applicable tax authority? Tiger Corporation, a manufacturer based in State P, purcha
Solutions for Questions and Problems Chapter 2
37
CHAPTER 2 GROSS INCOME AND EXCLUSIONS
Group 1 - Multiple Choice Questions 1. 2. 3. 4. 5. 6. B B A A E D (Section 2.1) 7. C (Section 2.6) (Section 2.1) 8. B (Section 2.7) (Section 2.2) 9. C (Sections 2.1, 2
Solutions for Questions and Problems Chapter 7
177
CHAPTER 8 CAPITAL GAINS AND LOSSES
Group 1 - Multiple Choice Questions 1. 2. 3. 4. 5. 6. C E E C C C (Section 8.1) (Section 8.1) ($77,500 55,000) (Section 8.3) (Section 8.4) 8,446 + (15% x $50,000) (Secti
Chapter 04I
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4
C H A P T E R
GROSS INCOME: EXCLUSIONS
LEARNING OBJECTIVES
After studying this chapter, you should be able to
1
Explain the conditions that must exist for an item to be excluded from gross income Determine whether
Chapter 03I
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C H A P T E R
GROSS INCOME: INCLUSIONS
LEARNING OBJECTIVES
After studying this chapter, you should be able to
1
Explain the difference between the economic, accounting, and tax concepts of income Explain the princ
Chapter 01I
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C H A P T
AN INTRODUCTION T O TA X AT I O N
E
R
LEARNING OBJECTIVES
After studying this chapter, you should be able to
1 2 3 4
Discuss the history of taxation in the United States Differentiate between the three t
Solutions for Questions and Problems Chapter 3
51
CHAPTER 3 BUSINESS EXPENSES AND RETIREMENT PLANS
Group 1 - Multiple Choice Questions 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. E D D D D D B C B E D B A (Section 3.1) (Section 3.8) (Section 3.8) (Section
Chapter 02I
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C H A P T E R
D E T E R M I N AT I O N O F TA X
LEARNING OBJECTIVES
After studying this chapter, you should be able to
1 2 3
Use the tax formula to compute an individuals taxable income Determine the amount allowa
Solutions for Questions and Problems Chapter 7
159
CHAPTER 7 ACCOUNTING PERIODS AND METHODS AND DEPRECIATION
Group 1 - Multiple Choice Questions 1. 2. 3. 4. 5. 6. 7. C D A C B C C (1/12 of $150,000) x 2 (Section 7.1) (Section 7.2) (Sections 7.4, 7.6) (20%
Solutions for Questions and Problems Chapter 6
137
CHAPTER 6 CREDITS AND SPECIAL TAXES Group 1 - Multiple Choice Questions 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. D C C D C D E A C D (Section 6.1) (Section 6.1) (Section 6.2) (Section 6.3) (Section 6.4) (Section 6.
CHAPTER 5 ITEMIZED DEDUCTIONS AND OTHER INCENTIVES Group 1 - Multiple Choice Questions 1. 2. 3. 4. 5. 6. 7. 8. 9. C B E A C E D B A (Section 5.1) (Section 5.1) (Section 5.2) (Section 5.2) (Section 5.3) (Section 5.7) (Section 5.4) (Section 5.4) (Section 5.