Tax and Answer A. Essay

5326 WordsJun 18, 201322 Pages
1. Which tax is calculated on the transfer of property and is normally determined by multiplying the value of the property transferred by a tax rate? Choose 1 answer A. income tax B. progressive tax C. excise tax D. FICA tax 2. Which two statements describe how taxes influence decisions made when filing a return for an individual taxpayer? Choose 2 answers A. Various tax credits, deductions, and exclusions are designed to encourage taxpayers to obtain additional education and plan for retirement. B. Changes in tax structure may allow taxpayers to have more money to spend. C. Shorter asset lives and accelerated methods encourage additional investment in depreciable property acquired for business use. D. The special…show more content…
an individual taxpayer B. a corporate taxpayer C. a fiduciary D. a charitable entity 9. Which statement is true about the tax treatment of a trust? Choose 1 answer A. Trusts are allowed a personal exemption in computing the fiduciary tax liability. B. The alternative minimum tax (AMT) may apply to a trust only in the first tax year. C. Unlike other taxpayers subject to the AMT, trusts may NOT claim an exemption. D. Generally, the taxable income of a trust is computed similarly to that for an individual. 10. When the alternative minimum tax (AMT) was first established, what was its objective? Choose 1 answer A. To reduce what was perceived as abuses by higher income taxpayers NOT paying their "fair" share of taxes B. To reduce the amount of tax lower income taxpayers were paying C. To remove upper income taxpayers from the paying taxes if they invested in long-term investments D. To smooth out the percentage of taxes paid by all taxpayers 11. Which two statements are true about policy-setting bodies? Choose 2 answers A. The FASB is an agency of the federal government that has the broad powers to prescribe accounting standards to be employed by companies that fall within its jurisdiction. B. The Securities and Exchange Commission (SEC) establishes and improves standards of financial accounting and reporting for the guidance and education of the public. C. The Financial Accounting Standards Board (FASB)

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