Question 1

A tax with a graduated rate structure must have at least two brackets of tax base.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following does not contribute to the dynamic nature of the tax law?

Accepted Answer

A)  The political pressure from professional lobbyists 
B)  Changes in the economic and social climate 
C)  Changes in revenue needs of the government 
D)  All of the above contribute to the dynamic nature of the tax law 
A)  The political pressure from professional lobbyists 
B)  Changes in the economic and social climate 
C)  Changes in revenue needs of the government 
D)  All of the above contribute to the dynamic nature of the tax law

Question 3

Mr. Bilboa is a citizen of Portugal. Which of the following statements is true?

Accepted Answer

A)  The U.S. government has no jurisdiction to tax Mr. Bilboa because he is not a U.S. citizen. 
B)  The U.S. government has jurisdiction to tax Mr. Bilboa if he is a permanent resident of the United States. 
C)  The U.S. government has jurisdiction to tax Mr. Bilboa if he earns income from a business he operates in Florida. 
D)  Both B. and C. are true. 
A)  The U.S. government has no jurisdiction to tax Mr. Bilboa because he is not a U.S. citizen. 
B)  The U.S. government has jurisdiction to tax Mr. Bilboa if he is a permanent resident of the United States. 
C)  The U.S. government has jurisdiction to tax Mr. Bilboa if he earns income from a business he operates in Florida. 
D)  Both B. and C. are true.

Question 4

The potential for conflict among taxing jurisdictions is greatest for businesses operating on a global scale.

Accepted Answer

A) True 
 B)False

Question 5

The state of Virginia charges motorists 50 cents for every trip across a toll bridge over the James River. This charge is an example of a(n):

Accepted Answer

A)  User's fee 
B)  Transaction-based tax 
C)  Activity-based tax 
D)  Excise tax 
A)  User's fee 
B)  Transaction-based tax 
C)  Activity-based tax 
D)  Excise tax

Question 6

Acme Inc.'s federal income tax increased by $100,000 this year. As a result, Acme reduced the annual dividend paid on its common stock by $100,000. Who bears the incidence of the corporate tax increase?

Accepted Answer

A)  Acme Inc. 
B)  Acme's customers 
C)  Acme's employees 
D)  Acme's shareholders 
A)  Acme Inc. 
B)  Acme's customers 
C)  Acme's employees 
D)  Acme's shareholders

Question 7

Revenue rulings and revenue procedures are written by:

Accepted Answer

A)  The Internal Revenue Service 
B)  The Department of the Treasury 
C)  The United States Congress 
D)  The Supreme Court 
A)  The Internal Revenue Service 
B)  The Department of the Treasury 
C)  The United States Congress 
D)  The Supreme Court

Question 8

Ms. Penser resides in the city of Lanock, Tennessee. She owns 100% of the stock of PSW Inc., which is incorporated under Tennessee law and conducts business in six different local jurisdictions in Tennessee.
A. How many taxpayers are identified in the above statement of facts?
B. Identify the governments with jurisdiction to tax each of these taxpayers.

Accepted Answer

A. Ms. Penser is an individual taxpayer,

Question 9

Which of the following is not an advantage of state conformity to federal corporate income tax laws?

Accepted Answer

A)  States have control over their corporate income tax revenues. 
B)  States do not have to enact comprehensive corporate income tax statutes. 
C)  Conformity eases the compliance burden of corporate taxpayers. 
D)  All of the above are advantages of state conformity. 
A)  States have control over their corporate income tax revenues. 
B)  States do not have to enact comprehensive corporate income tax statutes. 
C)  Conformity eases the compliance burden of corporate taxpayers. 
D)  All of the above are advantages of state conformity.

Question 10

The U.S. government has jurisdiction to tax individuals who are not U.S. citizens but who are permanent U.S. residents.

Accepted Answer

A) True 
 B)False

Question 11

Treasury regulations are tax laws written by the Treasury Department.

Accepted Answer

A) True 
 B)False

Question 12

The property tax on a rent house owned by Mr. Janey increased by $1,200 this year. Mr. Janey increased the monthly rent charged to his tenant, Ms. Lacey, by $45. Who bears the incidence of the property tax increase?

Accepted Answer

A)  Mr. Janey 
B)  Ms. Lacey 
C)  Both Mr. Janey and Ms. Lacey 
D)  Neither Mr. Janey nor Ms. Lacey 
A)  Mr. Janey 
B)  Ms. Lacey 
C)  Both Mr. Janey and Ms. Lacey 
D)  Neither Mr. Janey nor Ms. Lacey

Question 13

Which of the following statements about the Internal Revenue Code is false?

Accepted Answer

A)  The Internal Revenue Code has not been amended since 1986. 
B)  The Internal Revenue Code is part of federal statutory law. 
C)  The Internal Revenue Code consists of numerically organized sections. 
D)  Only Congress has the authority to amend the Internal Revenue Code. 
A)  The Internal Revenue Code has not been amended since 1986. 
B)  The Internal Revenue Code is part of federal statutory law. 
C)  The Internal Revenue Code consists of numerically organized sections. 
D)  Only Congress has the authority to amend the Internal Revenue Code.

Question 14

A tax is intended to deter or punish unacceptable behavior.

Accepted Answer

A) True 
 B)False

Question 15

When did the federal income tax become a permanent tax?

Accepted Answer

A)  Immediately after the Revolutionary War 
B)  During the Civil War 
C)  In 1913 when the Sixteenth Amendment to the U.S. Constitution was ratified 
D)  In 1939 when Congress enacted the first Internal Revenue Code 
A)  Immediately after the Revolutionary War 
B)  During the Civil War 
C)  In 1913 when the Sixteenth Amendment to the U.S. Constitution was ratified 
D)  In 1939 when Congress enacted the first Internal Revenue Code

Question 16

Which of the following statements concerning judicial authority is false?

Accepted Answer

A)  Appellate court decisions have more authority than trial court decisions. 
B)  Supreme Court decisions have more authority than appellate court decisions. 
C)  Supreme Court decisions are the equivalent of law. 
D)  None of the above statements is false. 
A)  Appellate court decisions have more authority than trial court decisions. 
B)  Supreme Court decisions have more authority than appellate court decisions. 
C)  Supreme Court decisions are the equivalent of law. 
D)  None of the above statements is false.

Question 17

Acme Inc.'s property taxes increased by $19,000 this year. As a result, Acme eliminated $19,000 from its budget for the employee Christmas party. Who bears the incidence of the corporate tax increase?

Accepted Answer

A)  Acme Inc. 
B)  Acme's customers. 
C)  Acme's employees. 
D)  Acme's shareholders. 
A)  Acme Inc. 
B)  Acme's customers. 
C)  Acme's employees. 
D)  Acme's shareholders.

Question 18

Forrest Township levies a tax on the assessed value of real property located within the town limits. The tax equals 1.4% of the value up to $300,000 plus 2% of any value in excess of $300,000. Mildred Payne owns real estate with a $983,500 assessed value. Compute her property tax.

Accepted Answer

Mildred's property t

Question 19

Which of the following does not characterize federal transfer taxes?

Accepted Answer

A)  The tax is imposed on the value of wealth transferred by an individual as a gift. 
B)  The tax is imposed on the value of wealth transferred because of the death of an individual. 
C)  The tax is imposed on the value of wealth transferred by an individual to charity. 
D)  All of the above characterize federal transfer taxes. 
A)  The tax is imposed on the value of wealth transferred by an individual as a gift. 
B)  The tax is imposed on the value of wealth transferred because of the death of an individual. 
C)  The tax is imposed on the value of wealth transferred by an individual to charity. 
D)  All of the above characterize federal transfer taxes.

Question 20

Purchasers of consumer goods through the mail are responsible for paying use tax on goods for which sales tax was not collected by the seller.

Accepted Answer

A) True 
 B)False

A tax with a graduated rate structure must have at least two brackets of tax base.

Which of the following does not contribute to the dynamic nature of the tax law?

Mr. Bilboa is a citizen of Portugal. Which of the following statements is true?

The potential for conflict among taxing jurisdictions is greatest for businesses operating on a global scale.

The state of Virginia charges motorists 50 cents for every trip across a toll bridge over the James River. This charge is an example of a(n):

Acme Inc.'s federal income tax increased by $100,000 this year. As a result, Acme reduced the annual dividend paid on its common stock by $100,000. Who bears the incidence of the corporate tax increase?

Revenue rulings and revenue procedures are written by:

Which of the following is not an advantage of state conformity to federal corporate income tax laws?

The U.S. government has jurisdiction to tax individuals who are not U.S. citizens but who are permanent U.S. residents.

Treasury regulations are tax laws written by the Treasury Department.

The property tax on a rent house owned by Mr. Janey increased by $1,200 this year. Mr. Janey increased the monthly rent charged to his tenant, Ms. Lacey, by $45. Who bears the incidence of the property tax increase?

Which of the following statements about the Internal Revenue Code is false?

A tax is intended to deter or punish unacceptable behavior.

When did the federal income tax become a permanent tax?

Which of the following statements concerning judicial authority is false?

Acme Inc.'s property taxes increased by $19,000 this year. As a result, Acme eliminated $19,000 from its budget for the employee Christmas party. Who bears the incidence of the corporate tax increase?

Forrest Township levies a tax on the assessed value of real property located within the town limits. The tax equals 1.4% of the value up to $300,000 plus 2% of any value in excess of $300,000. Mildred Payne owns real estate with a $983,500 assessed value. Compute her property tax.

Which of the following does not characterize federal transfer taxes?

Purchasers of consumer goods through the mail are responsible for paying use tax on goods for which sales tax was not collected by the seller.

Policy Standards for a Good Tax

Taxes As Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income From Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships, Partnerships, Llcs, and S Corporations

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

The Individual Tax Formula

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process

Filters

Exam 1: Taxes and Taxing Jurisdictions

A tax with a graduated rate structure must have at least two brackets of tax base.

Which of the following does not contribute to the dynamic nature of the tax law?

Mr. Bilboa is a citizen of Portugal. Which of the following statements is true?

The potential for conflict among taxing jurisdictions is greatest for businesses operating on a global scale.

The state of Virginia charges motorists 50 cents for every trip across a toll bridge over the James River. This charge is an example of a(n):

Acme Inc.'s federal income tax increased by $100,000 this year. As a result, Acme reduced the annual dividend paid on its common stock by $100,000. Who bears the incidence of the corporate tax increase?

Revenue rulings and revenue procedures are written by:

Which of the following is not an advantage of state conformity to federal corporate income tax laws?

The U.S. government has jurisdiction to tax individuals who are not U.S. citizens but who are permanent U.S. residents.

Treasury regulations are tax laws written by the Treasury Department.

The property tax on a rent house owned by Mr. Janey increased by $1,200 this year. Mr. Janey increased the monthly rent charged to his tenant, Ms. Lacey, by $45. Who bears the incidence of the property tax increase?

Which of the following statements about the Internal Revenue Code is false?

A tax is intended to deter or punish unacceptable behavior.

When did the federal income tax become a permanent tax?

Which of the following statements concerning judicial authority is false?

Acme Inc.'s property taxes increased by $19,000 this year. As a result, Acme eliminated $19,000 from its budget for the employee Christmas party. Who bears the incidence of the corporate tax increase?

Forrest Township levies a tax on the assessed value of real property located within the town limits. The tax equals 1.4% of the value up to $300,000 plus 2% of any value in excess of $300,000. Mildred Payne owns real estate with a $983,500 assessed value. Compute her property tax.

Which of the following does not characterize federal transfer taxes?

Purchasers of consumer goods through the mail are responsible for paying use tax on goods for which sales tax was not collected by the seller.

Policy Standards for a Good Tax

Taxes As Transaction Costs

Maxims of Income Tax Planning

Tax Research

Taxable Income From Business Operations

Property Acquisitions and Cost Recovery Deductions

Property Dispositions

Nontaxable Exchanges

Sole Proprietorships, Partnerships, Llcs, and S Corporations

The Corporate Taxpayer

The Choice of Business Entity

Jurisdictional Issues in Business Taxation

The Individual Tax Formula

Compensation and Retirement Planning

Investment and Personal Financial Planning

Tax Consequences of Personal Activities

The Tax Compliance Process

Filters