ACC 405 Exam 1 BYU Questions With
Correct Answers
What is a tax? (key component) - CORRECT ANSWER✔✔-1. payment
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required
2. by the government
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3. not tied directly to benefit received by the taxpayer
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Tax equation - CORRECT ANSWER✔✔-Tax = Tax Base * Tax Rate
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Different ways to measure tax rate - CORRECT ANSWER✔✔--Marginal
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tax rate
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-average tax rate | |
-effective tax rate | |
Marginal Tax Rate - CORRECT ANSWER✔✔-tax rate that applies to the
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next additional increment of a taxpayer's taxable income
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Average Tax Rate - CORRECT ANSWER✔✔-taxpayer's average level of
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taxation on each dollar of taxable income
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, Effective Tax Rate - CORRECT ANSWER✔✔-taxpayer's average rate of
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taxation on each dollar of total income (both taxable and non-taxable)
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Tax rate structues - CORRECT ANSWER✔✔-Proportional (flat tax) -
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constant
progressive - increases with tax base | | | | |
regressive - decreasing marginal tax rate as base increases
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What is the depreciation for assets acquired and disposed of in the
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same tax year? - CORRECT ANSWER✔✔-$0
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For substantial improvements to real property, what happens for
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depreciation? - CORRECT ANSWER✔✔-The addition is treated as a new
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asset with the same recovery period of the original building
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What is the taxable income limitation? - CORRECT ANSWER✔✔-the 179
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expense is limited to the taxpayer's business income
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any excess carries forward, subject to the taxable income limitation but
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not the phase out limitation
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Immediate Expensing (179) may be used on... - CORRECT ANSWER✔✔-
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1. Qualified property
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Correct Answers
What is a tax? (key component) - CORRECT ANSWER✔✔-1. payment
| | | | | | | | | |
required
2. by the government
| | |
3. not tied directly to benefit received by the taxpayer
| | | | | | | | |
Tax equation - CORRECT ANSWER✔✔-Tax = Tax Base * Tax Rate
| | | | | | | | | |
Different ways to measure tax rate - CORRECT ANSWER✔✔--Marginal
| | | | | | | | |
tax rate
|
-average tax rate | |
-effective tax rate | |
Marginal Tax Rate - CORRECT ANSWER✔✔-tax rate that applies to the
| | | | | | | | | | |
next additional increment of a taxpayer's taxable income
| | | | | | |
Average Tax Rate - CORRECT ANSWER✔✔-taxpayer's average level of
| | | | | | | | |
taxation on each dollar of taxable income
| | | | | |
, Effective Tax Rate - CORRECT ANSWER✔✔-taxpayer's average rate of
| | | | | | | | |
taxation on each dollar of total income (both taxable and non-taxable)
| | | | | | | | | |
Tax rate structues - CORRECT ANSWER✔✔-Proportional (flat tax) -
| | | | | | | | |
constant
progressive - increases with tax base | | | | |
regressive - decreasing marginal tax rate as base increases
| | | | | | | |
What is the depreciation for assets acquired and disposed of in the
| | | | | | | | | | | |
same tax year? - CORRECT ANSWER✔✔-$0
| | | | |
For substantial improvements to real property, what happens for
| | | | | | | | |
depreciation? - CORRECT ANSWER✔✔-The addition is treated as a new
| | | | | | | | | |
asset with the same recovery period of the original building
| | | | | | | | |
What is the taxable income limitation? - CORRECT ANSWER✔✔-the 179
| | | | | | | | | |
expense is limited to the taxpayer's business income
| | | | | | |
any excess carries forward, subject to the taxable income limitation but
| | | | | | | | | | |
not the phase out limitation
| | | |
Immediate Expensing (179) may be used on... - CORRECT ANSWER✔✔-
| | | | | | | | |
1. Qualified property
| |
