, Chapter Income Tax Concepts
2
This chapter is the foundation for this text.
The concepts established here are fundamental to understanding the topics in subsequent
chapters. Chapters 3 through 16 incorporate a "look back" approach that discusses the
operation of the U.S. tax system through the conceptual framework developed in this
chapter. You may want to spend as many as five 50-minute class periods on this chapter's
content. Emphasize to students the importance of reading the Concept Review at the
beginning of each subsequent chapter (3 through 16). Also, point out the “concept
checks” located throughout the chapters.
Teaching Tip #1: A drill approach during class time reinforces the concepts presented in
the chapter. When students come to class, hand out a list of scenarios that demonstrate
the concepts to be discussed that day. Go around the classroom and have students
discuss the concept that explains the answer to the inherent question. The problems at the
end of the chapter fit this approach very well.
Teaching Tip #2: The next several pages contain examples I use as in-class exercises or
additional homework problems. (I have included the answers for you.) Students need as
much practice as we can give them on understanding the concepts. The efforts made now
will pay off later.
Teaching Tip #3: Suggest to students they rely on Table 2-1 to gain a familiarity with the
Concepts and related Constructs and Doctrines. This table gives students a map to follow
and a resource to look back on later.
Writing assignments: Problems 24, 29, 32, and 56; and Ethics Discussion Case 82
are suggested. Problem 21 can be presented in modified writing assignment form.
21A. Andrew Evans and his sister, Barbara Evans-DeCarlo, each receive a salary of
$80,000. Neither Andrew nor Barbara has any other source of income. During the current
year, Barbara paid $800 more in tax than Andrew. Barbara has come to you to receive
help in understanding why her tax bill is higher than Andrew's. Write a letter to Barbara
explaining the possible source(s) of the difference.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part.
2
This chapter is the foundation for this text.
The concepts established here are fundamental to understanding the topics in subsequent
chapters. Chapters 3 through 16 incorporate a "look back" approach that discusses the
operation of the U.S. tax system through the conceptual framework developed in this
chapter. You may want to spend as many as five 50-minute class periods on this chapter's
content. Emphasize to students the importance of reading the Concept Review at the
beginning of each subsequent chapter (3 through 16). Also, point out the “concept
checks” located throughout the chapters.
Teaching Tip #1: A drill approach during class time reinforces the concepts presented in
the chapter. When students come to class, hand out a list of scenarios that demonstrate
the concepts to be discussed that day. Go around the classroom and have students
discuss the concept that explains the answer to the inherent question. The problems at the
end of the chapter fit this approach very well.
Teaching Tip #2: The next several pages contain examples I use as in-class exercises or
additional homework problems. (I have included the answers for you.) Students need as
much practice as we can give them on understanding the concepts. The efforts made now
will pay off later.
Teaching Tip #3: Suggest to students they rely on Table 2-1 to gain a familiarity with the
Concepts and related Constructs and Doctrines. This table gives students a map to follow
and a resource to look back on later.
Writing assignments: Problems 24, 29, 32, and 56; and Ethics Discussion Case 82
are suggested. Problem 21 can be presented in modified writing assignment form.
21A. Andrew Evans and his sister, Barbara Evans-DeCarlo, each receive a salary of
$80,000. Neither Andrew nor Barbara has any other source of income. During the current
year, Barbara paid $800 more in tax than Andrew. Barbara has come to you to receive
help in understanding why her tax bill is higher than Andrew's. Write a letter to Barbara
explaining the possible source(s) of the difference.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a
publicly accessible website, in whole or in part.
