South-Western Federal Taxation 2018 Comprehensive ED.41 by William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young | Test Bank| Reviewed/Updated for 2021. All Chapters included 1-28(2731 pages)

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South-Western Federal Taxation 2018 Comprehensive ED.41 by William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young | Test Bank| Reviewed/Updated for 2021. All Chapters included 1-28(273... 1 pages)The first income tax on individuals (after the ratification of the Sixteenth Amendment to the Constitution) levied tax rates from a low of 2% to a high of 6%. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: CMPV.SWFT.LO: 1-02 - LO: 1-02 NATIONAL STANDARDS: United States - BUSPROG: Technology: Technology: - BUSPROG: Technology STATE STANDARDS: United States - AK - AICPA: FN-Research KEYWORDS: Bloom's: Knowledge OTHER: Time: 2 min. DATE CREATED: 9/19/2017 8:37 AM DATE MODIFIED: 9/19/2017 8:37 AM 6. The pay-as-you-go feature of the Federal income tax on individuals conforms to Adam Smith’s canon (principle) of certainty. a. True b. False ANSWER: False RATIONALE: Pay-as-you-go refers to the withholding provisions applicable to wages and other types of income and adds convenience to the tax system. POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: CMPV.SWFT.LO: 1-03 - LO: 1-03 NATIONAL STANDARDS: United States - BUSPROG: Technology: Technology: - BUSPROG: Technology STATE STANDARDS: United States - AK - AICPA: FN-Reporting KEYWORDS: Bloom's: Comprehension OTHER: Time: 2 min. DATE CREATED: 9/19/2017 8:37 AM DATE MODIFIED: 9/19/2017 8:37 AM Copyright Cengage Learning. Powered by Cognero. Page 3 Chapter 01: An Introduction to Taxation and Understanding the Federal Tax Law 7. The FICA tax (Medicare component) on wages is progressive since the tax due increases as wages increase. a. True b. False ANSWER: False RATIONALE: The FICA tax (Medicare component) is proportional because the rate is constant regardless of the wages earned. POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: CMPV.SWFT.LO: 1-03 - LO: 1-03 NATIONAL STANDARDS: United States - BUSPORG: Comprehension - BUSPORG:Comprehension STATE STANDARDS: United States - AK - AICPA: FN-Measurement - AICPA: FN-Measurement KEYWORDS: Bloom's: Comprehension OTHER: Time: 2 min. DATE CREATED: 9/19/2017 8:37 AM DATE MODIFIED: 9/19/2017 8:37 AM 8. The Federal estate and gift taxes are examples of progressive taxes. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: CMPV.SWFT.LO: 1-03 - LO: 1-03 NATIONAL STANDARDS: United States - BUSPORG: Comprehension - BUSPORG:Comprehension STATE STANDARDS: United States - AK - AICPA: FN-Measurement - AICPA: FN-Measurement KEYWORDS: Bloom's: Comprehension OTHER: Time: 2 min. DATE CREATED: 9/19/2017 8:37 AM DATE MODIFIED: 9/19/2017 8:37 AM Copyright Cengage Learning. Powered by Cognero. Page 4 Chapter 01: An Introduction to Taxation and Understanding the Federal Tax Law 9. The Federal excise tax on cigarettes is an example of a proportional tax. a. True b. False ANSWER: True RATIONALE: The tax is a flat $1.01 per pack. POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: CMPV.SWFT.LO: 1-03 - LO: 1-03 NATIONAL STANDARDS: United States - BUSPORG: Comprehension - BUSPORG:Comprehension STATE STANDARDS: United States - AK - AICPA: FN-Measurement - AICPA: FN-Measurement KEYWORDS: Bloom's: Comprehension OTHER: Time: 2 min. DATE CREATED: 9/19/2017 8:37 AM DATE MODIFIED: 9/19/2017 8:37 AM 10. Currently, the Federal income tax is less progressive than it ever has been in the past. a. True b. False ANSWER: False RATIONALE: Currently, the Federal income tax has six rates. At one time, it had two rates. POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: CMPV.SWFT.LO: 1-03 - LO: 1-03 NATIONAL STANDARDS: United States - BUSPORG: Comprehension - BUSPORG:Comprehension STATE STANDARDS: United States - AK - AICPA: FN-Measurement - AICPA: FN-Measurement KEYWORDS: Bloom's: Comprehension OTHER: Time: 2 min. DATE CREATED: 9/19/2017 8:37 AM DATE MODIFIED: 9/19/2017 8:37 AM Copyright Cengage Learning. Powered by Cognero. Page 5 Chapter 01: An Introduction to Taxation and Understanding the Federal Tax Law 11. Mona inherits her mother’s personal residence, which she converts to a furnished rental house. These changes should affect the amount of ad valorem property taxes levied on the properties. a. True b. False ANSWER: True RATIONALE: Conversion from residential to rental use will increase the taxes. Furthermore, Mona’s mother may have had a senior citizen exemption on the property, which will no longer be appropriate. Lastly, the furnishings in the rent house could now be subject to an ad valorem tax on personalty. POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: CMPV.SWFT.LO: 1-04 - LO: 1-04 NATIONAL STANDARDS: United States - BUSPORG: Comprehension - BUSPORG:Comprehension STATE STANDARDS: United States - AK - AICPA: FN-Measurement - AICPA: FN-Measurement KEYWORDS: Bloom's: Comprehension OTHER: Time: 2 min. DATE CREATED: 9/19/2017 8:37 AM DATE MODIFIED: 9/19/2017 8:37 AM 12. A fixture will be subject to the ad valorem tax on personalty rather than the ad valorem tax on realty. a. True b. False ANSWER: False RATIONALE: By definition, a fixture becomes part of the real estate to which it is attached. POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: CMPV.SWFT.LO: 1-04 - LO: 1-04 NATIONAL STANDARDS: United States - BUSPORG: Comprehension - BUSPORG:Comprehension STATE STANDARDS: United States - AK - AICPA: FN-Measurement - AICPA: FN-Measurement KEYWORDS: Bloom's: Comprehension OTHER: Time: 2 min. DATE CREATED: 9/19/2017 8:37 AM [Show More]

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