m m m m m m m m m m m
ss Entities 2022 Edition 13th Edition Spilker
m m m m m m
McGraw Hills Taxation of Individuals and Business Entities
m m m m m m m
2022 Edition 13th Edition by Spilker CH01
m m m m m m
ANSWERS ARE LOCATED IN THE SECOND PART OF THIS DOCUMENT
m m m m m m m m m
TRUE/FALSEm-mWritem'T'mifmthemstatementmismtruemandm'F'mifmthemstatementmismfalse.
1) Taxesminfluencemmanymtypesmofmbusinessmdecisionsmbutmgenerallymdomnotminfluencemperso
nalmdecisions.
⊚ true
⊚ false
2) Taxesminfluencembusinessmdecisionsmsuchmasmwheremambusinessmshouldmlocatemormho
wmambusinessmshouldmbemstructured.
⊚ true
⊚ false
3) Taxmpolicymrarelymplaysmanmimportantmpartminmpresidentialmcampaigns.
⊚ true
⊚ false
4) Margaretmrecentlymreceivedmamparkingmticket.mThismismamcommonmexamplemofmamlocalmtax.
⊚ true
⊚ false
5) Georgemrecentlympaidm$50mtomrenewmhismdriver'smlicense.mThem$50mpaymentmismconsidere
dmamtax.
⊚ true
⊚ false
6) Am1mpercentmchargemimposedmbymamlocalmgovernmentmonmfootballmticketsmsoldmism
notmconsideredmamtaxmifmallmproceedsmaremearmarkedmtomfundmlocalmschools.
⊚ true
⊚ false
Versionm 1
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m m m m m m m m m m m
ss Entities 2022 Edition 13th Edition Spilker
m m m m m m
McGraw Hills Taxation of Individuals and Business Entities
m m m m m m m
2022 Edition 13th Edition by Spilker CH01
m m m m m m
7) Onemkeymcharacteristicmofmamtaxmismthatmitmismamrequiredmpaymentmtomamgovernmentalmagency.
⊚ true
⊚ false
8) Commonmexamplesmofmsinmtaxesmincludemthemtaxesmimposedmonmairlinemticketsmandmgasoline.
⊚ true
⊚ false
9) Onembenefitmofmamsinmtaxm(e.g.,mamtaxmonmcigarettes)mismthatmitmshouldmincreasemthemdemand
mform
themproductsmbeingmtaxed.
⊚ true
⊚ false
10) Inmadditionmtomraisingmrevenues,mspecificmU.S.mtaxesmmaymhavemothermobjectivesm(e.
g.,meconomicmormsocialmobjectives).
⊚ true
⊚ false
11) Themtwomcomponentsmofmthemtaxmcalculationmaremthemtaxmratemandmthemtaxpayer'smstatus.
⊚ true
⊚ false
12) Themtaxmbasemformthemfederalmincomemtaxmismtaxablemincome.
⊚ true
⊚ false
13) Amflatmtaxmismanmexamplemofmamgraduatedmtaxmsystem.
Versionm 2
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m m m m m m m m m m m
ss Entities 2022 Edition 13th Edition Spilker
m m m m m m
McGraw Hills Taxation of Individuals and Business Entities
m m m m m m m
2022 Edition 13th Edition by Spilker CH01
m m m m m m
⊚ true
⊚ false
14) Themmainmdifficultyminmcalculatingmanmincomemtaxmismdeterminingmthemcorrectmamountmofm
themtaxmbase.
⊚ true
⊚ false
15) Amtaxpayer'smaveragemtaxmratemismthemmostmappropriatemtaxmratemtomuseminmtaxmplanning.
⊚ true
⊚ false
16) Themeffectivemtaxmrate,minmgeneral,mprovidesmambettermdepictionmofmamtaxpayer'smtaxmbur
denmthanmthemaveragemtaxmrate.
⊚ true
⊚ false
17) Themeffectivemtaxmratemexpressesmthemtaxpayer'smtotalmtaxmasmampercentagemofmthemtaxpay
er'smtaxablemandmnontaxablemincome.
⊚ true
⊚ false
18) Inmamproportionalm(flat)mtaxmratemsystem,mthemmarginalmtaxmratemwillmalwaysmequalm
themaveragemtaxmrate.
⊚ true
⊚ false
19) Inmamregressivemtaxmratemsystem,mthemmarginalmtaxmratemwillmoftenmbemgreatermthanmthemaver
agemtaxmrate.
Versionm 3
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m m m m m m m m m m m
ss Entities 2022 Edition 13th Edition Spilker
m m m m m m
McGraw Hills Taxation of Individuals and Business Entities
m m m m m m m
2022 Edition 13th Edition by Spilker CH01
m m m m m m
⊚ true
⊚ false
20) Amsalesmtaxmismamcommonmexamplemofmamprogressivemtaxmratemstructure.
⊚ true
⊚ false
21) Inmtermsmofmeffectivemtaxmrates,mthemsalesmtaxmcanmbemviewedmasmamregressivemtax.
⊚ true
⊚ false
22) Whilemsalesmtaxesmaremquitemcommon,mcurrentlymthemU.S.mfederalmgovernmentmdoesm
notmimposemamsalesmtax.
⊚ true
⊚ false
23) Themlargestmfederalmtax,minmtermsmofmrevenuemcollected,mismthemSocialmSecuritymtax.
⊚ true
⊚ false
24) Them9m thmAmendmentmtomthemU.S.mConstitutionmremovedmallmdoubtmthatmamfederalminco
memtaxmwasmallowedmundermthemU.S.mConstitution.
⊚ true
⊚ false
25) Amcommonmexamplemofmanmemployment-relatedmtaxmismthemMedicaremtax.
⊚ true
⊚ false
Versionm 4
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