1s
Copyrights©s2022sPearsonsEducation,sInc.s
Pearson'ssFederalsTaxations2022:sIndividuals,s35es(Rupert)s
ChaptersI1:ssAnsIntroductionstosTaxations
s
LO1:ssHistorysofsTaxationsinsthesUnitedsStatess
s
1)sThesfederalsincomestaxsissthesdominantsformsofstaxationsbysthesfederalsgovernment.s
Answer:ssTRUEs
Explanation:ssThesfederalsincomestaxsprovidessmoresrevenuessthansanysotherstax.s
PagesRef.:ssI:1-2s
Objective:ss1s
s
2)sThesSixteenthsAmendmentstosthesU.S.sConstitutionspermitssthespassagesofsasfederalsincome
s
taxslaw.s
Answer:ssTRUEs
Explanation:ssThesSixteenthsAmendmentsamendedsthesConstitutionstospermitsthesimpositions
ofs
ansincomestax.s
PagesRef.:ssI:1-2s
Objective:ss1s
s
3)sWhensaschangesinsthestaxslawsissdeemedsnecessarysbysCongress,sthesentiresInternalsRevenu
es
Codesmustsbesrevised.s
Answer:ssFALSEs
Explanation:ssThesfederalsincomestaxslawsisschangedsonsansincrementalsbasis.s
PagesRef.:ssI:1-3s
Objective:ss1s
s
4)sTheslargestssourcesofsfederalsrevenuessissthescorporatesincomestax.s
Answer:ssFALSEs
Explanation:ssTheslargestssourcesissthesindividualsincomestax.s
PagesRef.:ssI:1-3s
Objective:ss1s
s
5)sUntilsabouts100syearssago,sattemptsstosimposesasfederalsincomestaxsweresruleds
unconstitutional.sThesamendmentstosthesU.S.sConstitutionsallowingsthesimpositionsofsasfedera
ls
incomestaxsissthes
A)sSecondsAmendment.s
B)sThirteenthsAmendment.s
C)sSixteenthsAmendment.s
D)sNineteenthsAmendment.s
Answer:ssCs
Explanation:ssThesSixteenthsAmendment,sratifiedsins1913,sgavesCongresssthespowerstosimpos
,esas
federalsincomestax.s
PagesRef.:ssI:1-2s
Objective:ss1s
s
s
s
DOWNLOADsTHEsTestsBanksforsPearsonssFederalsTaxations2022sComprehensive
ssssssssssssssssssssssssss35thsEditionsRupert
nursytestbank.store
2s
Copyrights©s2022sPearsonsEducation,sInc.s
6)sTheslargestssourcesofsrevenuessforsthesfederalsgovernmentscomessfroms
A)sindividualsincomestaxes.s
B)scorporatesincomestaxes.s
C)sSocialsSecuritysandsMedicarestaxess(FICA).s
D)sestatesandsgiftstaxes.s
Answer:ssAs
Explanation:ssThesindividualsincomestaxshassprovidedstheslargestssourcesofsrevenuessforsman
ys
years.s
PagesRef.:ssI:1-3s
Objective:ss1s
s
LO2:ssTypessofsTaxsRatesStructuress
s
1)sAsprogressivestaxsratesstructuresissoneswheresthesratesofstaxsincreasessassthestaxsbasesincre
ases.s
Answer:ssTRUEs
Explanation:ssUndersasprogressivestaxssystem,sthesratesincreasessassthestaxsbasesincreases.s
PagesRef.:ssI:1-4s
Objective:ss2s
s
2)sThestermss"progressivestax"sands"flatstax"saressynonymous.s
Answer:ssFALSEs
Explanation:ssAsproportional,snotsprogressive,staxsandsflatstaxsaressynonymous.s
PagesRef.:ssI:1-4s
Objective:ss2s
s
3)sAsproportionalstaxsratesissoneswheresthesratesofsthestaxsissthessamesforsallstaxpayers,sregard
lesss
ofsincomeslevels.s
Answer:ssTRUEs
Explanation:ssAsproportionalstaxsissessentiallysasflatstax.s
PagesRef.:ssI:1-4s
Objective:ss2s
s
4)sRegressivestaxsratessdecreasesassthestaxsbasesincreases.s
,Answer:ssTRUEs
Explanation:ssRegressivesratessincreasesassthesbasesdecreases.s
PagesRef.:ssI:1-5s
Objective:ss2s
s
5)sThesmarginalstaxsratesissusefulsinstaxsplanningsbecausesitsmeasuressthestaxseffectsofsasprop
oseds
transaction.s
Answer:ssTRUEs
Explanation:ssThesmarginalsratesappliesstosthesplannedsadditionstosincomesorsreductionstos
income.s
PagesRef.:ssI:1-5s
Objective:ss2s
s
DOWNLOADsTHEsTestsBanksforsPearsonssFederalsTaxations2022sComprehensive
ssssssssssssssssssssssssss35thsEditionsRupert
nursytestbank.store
3s
Copyrights©s2022sPearsonsEducation,sInc.s
6)sAstaxpayer'ssaveragestaxsratesissthestaxsratesappliedstosansincrementalsamountsofstaxables
incomesthatsissaddedstosthestaxsbase.s
Answer:ssFALSEs
Explanation:ssThesmarginalstaxsratesissthestaxsratesappliedstosansincrementalsamountsofstaxabl
es
income.s
PagesRef.:ssI:1-5s
Objective:ss2s
s
7)sIfsastaxpayer'sstotalstaxsliabilitysiss$30,000,staxablesincomesiss$100,000,sandseconomicsinco
mes
iss$120,000,sthesaveragestaxsratesiss30spercent.s
Answer:ssTRUEs
Explanation:ssThesaveragesratesequalssthestaxsliabilitysdividedsbysthestaxablesincome.s
PagesRef.:ssI:1-5s
Objective:ss2s
s
8)sIfsastaxpayer'sstotalstaxsliabilitysiss$4,000,staxablesincomesiss$20,000,sandstotalseconomics
incomesiss$40,000,sthenstheseffectivestaxsratesiss20spercent.s
Answer:ssFALSEs
Explanation:ssTheseffectivesrateswouldsbes$4,000/$40,000s=s10spercent.s
PagesRef.:ssI:1-6s
Objective:ss2s
s
9)sArthurspaysstaxsofs$5,000sonstaxablesincomesofs$50,000swhilestaxpayersBarbaraspaysstaxso
fs
$12,000sons$120,000.sThestaxsissas
, A)sprogressivestax.s
B)sproportionalstax.s
C)sregressivestax.s
D)sNonesofsthesabove.s
Answer:ssBs
Explanation:ssThestaxsratesissproportionalsbecausesthes10%staxsratesappliesstosbothstaxpayers
s
regardlesssofstheirsincomeslevel.s
PagesRef.:ssI:1-4;sExamplesI:1-3s
Objective:ss2s
s
10)sWhichsofsthesfollowingstaxessissprogressive?s
A)ssalesstaxs
B)sexcisestaxs
C)spropertystaxs
D)sfederalsincomestaxs
Answer:ssDs
Explanation:ssFederalsincomestaxsratessincreasesassastaxpayer'sstaxablesincomesrises.s
PagesRef.:ssI:1-4;sTopicsReviewsI:1-1s
Objective:ss2s
s
s
s
DOWNLOADsTHEsTestsBanksforsPearsonssFederalsTaxations2022sComprehensive
ssssssssssssssssssssssssss35thsEditionsRupert
nursytestbank.store
4s
Copyrights©s2022sPearsonsEducation,sInc.s
11)sWhichsofsthesfollowingstaxessissproportional?s
A)sgiftstaxs
B)sincomestaxs
C)ssalesstaxs
D)sFederalsInsurancesContributionssActs(FICA)s
Answer:ssCs
Explanation:ssAssalesstaxsissassessedsatsasfixedsratesofsthespurchasesamount,sbasedsonsstatesan
ds
localslaw.s
PagesRef.:ssI:1-4;sTopicsReviewsI:1-1s
Objective:ss2s
s
12)sWhichsofsthesfollowingstaxessissregressive?s
A)sFederalsInsurancesContributionssActs(FICA)s
B)sexcisestaxs
C)spropertystaxs
D)sgiftstaxs
Answer:ssAs
Explanation:ssForsuppersincomeswagesearners,sthesSocialsSecuritystaxsceasessatsasmaximums
Copyrights©s2022sPearsonsEducation,sInc.s
Pearson'ssFederalsTaxations2022:sIndividuals,s35es(Rupert)s
ChaptersI1:ssAnsIntroductionstosTaxations
s
LO1:ssHistorysofsTaxationsinsthesUnitedsStatess
s
1)sThesfederalsincomestaxsissthesdominantsformsofstaxationsbysthesfederalsgovernment.s
Answer:ssTRUEs
Explanation:ssThesfederalsincomestaxsprovidessmoresrevenuessthansanysotherstax.s
PagesRef.:ssI:1-2s
Objective:ss1s
s
2)sThesSixteenthsAmendmentstosthesU.S.sConstitutionspermitssthespassagesofsasfederalsincome
s
taxslaw.s
Answer:ssTRUEs
Explanation:ssThesSixteenthsAmendmentsamendedsthesConstitutionstospermitsthesimpositions
ofs
ansincomestax.s
PagesRef.:ssI:1-2s
Objective:ss1s
s
3)sWhensaschangesinsthestaxslawsissdeemedsnecessarysbysCongress,sthesentiresInternalsRevenu
es
Codesmustsbesrevised.s
Answer:ssFALSEs
Explanation:ssThesfederalsincomestaxslawsisschangedsonsansincrementalsbasis.s
PagesRef.:ssI:1-3s
Objective:ss1s
s
4)sTheslargestssourcesofsfederalsrevenuessissthescorporatesincomestax.s
Answer:ssFALSEs
Explanation:ssTheslargestssourcesissthesindividualsincomestax.s
PagesRef.:ssI:1-3s
Objective:ss1s
s
5)sUntilsabouts100syearssago,sattemptsstosimposesasfederalsincomestaxsweresruleds
unconstitutional.sThesamendmentstosthesU.S.sConstitutionsallowingsthesimpositionsofsasfedera
ls
incomestaxsissthes
A)sSecondsAmendment.s
B)sThirteenthsAmendment.s
C)sSixteenthsAmendment.s
D)sNineteenthsAmendment.s
Answer:ssCs
Explanation:ssThesSixteenthsAmendment,sratifiedsins1913,sgavesCongresssthespowerstosimpos
,esas
federalsincomestax.s
PagesRef.:ssI:1-2s
Objective:ss1s
s
s
s
DOWNLOADsTHEsTestsBanksforsPearsonssFederalsTaxations2022sComprehensive
ssssssssssssssssssssssssss35thsEditionsRupert
nursytestbank.store
2s
Copyrights©s2022sPearsonsEducation,sInc.s
6)sTheslargestssourcesofsrevenuessforsthesfederalsgovernmentscomessfroms
A)sindividualsincomestaxes.s
B)scorporatesincomestaxes.s
C)sSocialsSecuritysandsMedicarestaxess(FICA).s
D)sestatesandsgiftstaxes.s
Answer:ssAs
Explanation:ssThesindividualsincomestaxshassprovidedstheslargestssourcesofsrevenuessforsman
ys
years.s
PagesRef.:ssI:1-3s
Objective:ss1s
s
LO2:ssTypessofsTaxsRatesStructuress
s
1)sAsprogressivestaxsratesstructuresissoneswheresthesratesofstaxsincreasessassthestaxsbasesincre
ases.s
Answer:ssTRUEs
Explanation:ssUndersasprogressivestaxssystem,sthesratesincreasessassthestaxsbasesincreases.s
PagesRef.:ssI:1-4s
Objective:ss2s
s
2)sThestermss"progressivestax"sands"flatstax"saressynonymous.s
Answer:ssFALSEs
Explanation:ssAsproportional,snotsprogressive,staxsandsflatstaxsaressynonymous.s
PagesRef.:ssI:1-4s
Objective:ss2s
s
3)sAsproportionalstaxsratesissoneswheresthesratesofsthestaxsissthessamesforsallstaxpayers,sregard
lesss
ofsincomeslevels.s
Answer:ssTRUEs
Explanation:ssAsproportionalstaxsissessentiallysasflatstax.s
PagesRef.:ssI:1-4s
Objective:ss2s
s
4)sRegressivestaxsratessdecreasesassthestaxsbasesincreases.s
,Answer:ssTRUEs
Explanation:ssRegressivesratessincreasesassthesbasesdecreases.s
PagesRef.:ssI:1-5s
Objective:ss2s
s
5)sThesmarginalstaxsratesissusefulsinstaxsplanningsbecausesitsmeasuressthestaxseffectsofsasprop
oseds
transaction.s
Answer:ssTRUEs
Explanation:ssThesmarginalsratesappliesstosthesplannedsadditionstosincomesorsreductionstos
income.s
PagesRef.:ssI:1-5s
Objective:ss2s
s
DOWNLOADsTHEsTestsBanksforsPearsonssFederalsTaxations2022sComprehensive
ssssssssssssssssssssssssss35thsEditionsRupert
nursytestbank.store
3s
Copyrights©s2022sPearsonsEducation,sInc.s
6)sAstaxpayer'ssaveragestaxsratesissthestaxsratesappliedstosansincrementalsamountsofstaxables
incomesthatsissaddedstosthestaxsbase.s
Answer:ssFALSEs
Explanation:ssThesmarginalstaxsratesissthestaxsratesappliedstosansincrementalsamountsofstaxabl
es
income.s
PagesRef.:ssI:1-5s
Objective:ss2s
s
7)sIfsastaxpayer'sstotalstaxsliabilitysiss$30,000,staxablesincomesiss$100,000,sandseconomicsinco
mes
iss$120,000,sthesaveragestaxsratesiss30spercent.s
Answer:ssTRUEs
Explanation:ssThesaveragesratesequalssthestaxsliabilitysdividedsbysthestaxablesincome.s
PagesRef.:ssI:1-5s
Objective:ss2s
s
8)sIfsastaxpayer'sstotalstaxsliabilitysiss$4,000,staxablesincomesiss$20,000,sandstotalseconomics
incomesiss$40,000,sthenstheseffectivestaxsratesiss20spercent.s
Answer:ssFALSEs
Explanation:ssTheseffectivesrateswouldsbes$4,000/$40,000s=s10spercent.s
PagesRef.:ssI:1-6s
Objective:ss2s
s
9)sArthurspaysstaxsofs$5,000sonstaxablesincomesofs$50,000swhilestaxpayersBarbaraspaysstaxso
fs
$12,000sons$120,000.sThestaxsissas
, A)sprogressivestax.s
B)sproportionalstax.s
C)sregressivestax.s
D)sNonesofsthesabove.s
Answer:ssBs
Explanation:ssThestaxsratesissproportionalsbecausesthes10%staxsratesappliesstosbothstaxpayers
s
regardlesssofstheirsincomeslevel.s
PagesRef.:ssI:1-4;sExamplesI:1-3s
Objective:ss2s
s
10)sWhichsofsthesfollowingstaxessissprogressive?s
A)ssalesstaxs
B)sexcisestaxs
C)spropertystaxs
D)sfederalsincomestaxs
Answer:ssDs
Explanation:ssFederalsincomestaxsratessincreasesassastaxpayer'sstaxablesincomesrises.s
PagesRef.:ssI:1-4;sTopicsReviewsI:1-1s
Objective:ss2s
s
s
s
DOWNLOADsTHEsTestsBanksforsPearsonssFederalsTaxations2022sComprehensive
ssssssssssssssssssssssssss35thsEditionsRupert
nursytestbank.store
4s
Copyrights©s2022sPearsonsEducation,sInc.s
11)sWhichsofsthesfollowingstaxessissproportional?s
A)sgiftstaxs
B)sincomestaxs
C)ssalesstaxs
D)sFederalsInsurancesContributionssActs(FICA)s
Answer:ssCs
Explanation:ssAssalesstaxsissassessedsatsasfixedsratesofsthespurchasesamount,sbasedsonsstatesan
ds
localslaw.s
PagesRef.:ssI:1-4;sTopicsReviewsI:1-1s
Objective:ss2s
s
12)sWhichsofsthesfollowingstaxessissregressive?s
A)sFederalsInsurancesContributionssActs(FICA)s
B)sexcisestaxs
C)spropertystaxs
D)sgiftstaxs
Answer:ssAs
Explanation:ssForsuppersincomeswagesearners,sthesSocialsSecuritystaxsceasessatsasmaximums
