The profit was first taxed in the corporate level and then taxed on the personal level. This is a. Unjust taxation b. Tiered taxation c. Double taxation d. Purposeful taxation
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- The definition of gross income in the tax law is: All items specifically listed as income in the tax law All cash payments received for goods provided and services performed All income from whatever source derived All income from whatever source derived unless the income is earned illegallyThe purpose of Schedule M-1 on the corporate tax return is to: Reconcile accounting (book) income to taxable income. Summarize the dividends received deduction calculation. List the officers of the corporation and their compensation. Calculate the net operating loss deduction.Which of the following is an acceptable method of accounting under the tax law? The accrual method The hybrid method The cash method All of the above are acceptable None of the above
- Which option is the correct definition of tax base? Select one: a. Tax base is the amount the asset or liability is recorded at in the accounting records. b. Tax base is a comparing the balance sheet derived using accounting rules with balance sheet that would be derived from taxation rules c. Tax base is the recognition of assets and liabilities in the balance sheet based on the differences between accounting and tax values of assets and liabilities. d. Tax base is defined as the amount that is attributed to an asset or liability for tax purposes.Which is true about intraperiod tax allocation? A. Intraperiod tax allocation arises because certain items are recognized for accountingand tax purposes. B. Intraperiod tax allocation is required for the effect of accounting estimates. C. The purpose is to relate the income tax expense to the items which affect the amountof tax. D. The purpose is to allocate income tax expense evenly over a number of accountingperiods.
