1
An Overview of Federal Taxation
Test Bank
True or False
_f_ 1.
A correlation exists between the amount of Federal tax an individual
pays and the value of benefits an individual receives.
_t_ 2.
The Thirteenth Amendment enacted in 1916 made it clear that
T has a tax base of $30,000 and pays a tax of $2,500 on the first $25,000
and $750 on the next $5,000. This is an example of what type of tax rate?
1. b. Progressive
T has a tax base of $30,000 and pays a tax of $2,500 on the first $25,000
and $750 on the
1) The federal income tax is the dominant form of taxation by the federal government. Answer:
TRUE
2) The Sixteenth Amendment permits the passage of a federal income tax. Answer: TRUE
3) When a change in the tax law is deemed necessary by Congress, the en
1) Except as otherwise provided, gross income means all income from whatever source derived.
Answer: TRUE
2) Under the economist's definition, unrealized gains, as well as gifts and inheritances, are income.
Answer: TRUE
3) Under both the accounting and t
A correlation exists between the amount of Federal tax an individual pays
and the value of benefits an individual receives.
1. False
The Thirteenth Amendment enacted in 1916 made it clear that Congress
had the right to impose an income tax.
1. False
The F
David Smith's Accident: Who Pays What?
Coverage
Liability (limits)
Bodily injury
Ashley
Fran
Cecilia
Medical payment (limits)
David
Ashley
Fran
Cecilia
Collision coverage (limits)
David's car
Ashley's car
David's out-of-pocket expenses
Fran's bodily injur
0
Running Head: A CPA Selects a Health Care Plan
ACPASelectsaHealthCarePlan
PleaseCompleteCaseStudyNo.5onpage345ofourtextbook,PersonalFinance,Garmanand
Forgue,12thEditionandanswersubpartsa),b)andc).Theirisnotmuchinformationprovided
unfortunatelyregardingT
DO THE MATH Question 3
Average Daily Balance and Finance Charges
Day
a.
Amount
1
$
600
APR
5
$
150
Billing Days
12
$
300
Days in a year
15
-$
200
30
360
Average Daily Balance for April Without New Purchase
$600 (1/2)+$400(1/2)=
b.
19.20%
$
500.00
Finance
Running Head: AUTOMOBILE INSURANCE POLICY
How Much Auto Accident Loss Will Be Covered
Please complete problem no. 4 on pages 315 and 316 of the textbook under the section "Do
The Math." This problem involves the pay out of insurance claims and liability t
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