Exam (elaborations)
TAX 4001 - Exam 1 (1, 2, 3, 4, and 6).
TAX 4001 - Exam 1 (1, 2, 3, 4, and 6).
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TAX 4001 - Exam 1 (1, 2, 3, 4, and 6)An after tax cash outflow is reduced by a tax savings when - ANS-The related expense
is deductible
How much qualified business income can be deducted, in general, by non-corporate
taxpayers - ANS-20% of QBI
In general, prepaid income is usually - ANS-Included in taxable income before it is
included in book income
In which marginal tax rate structure does the tax rate increase as the tax base
increases? - ANS-Progressive
In which of the following types of transactions are parties NOT able to customize their
transaction? - ANS-Public market transaction
NO deduction is allowed for each of the following items EXCEPT - ANS-Sexual
harassment settlements when the amount is disclosed
The special one year deferral of prepaid income rule applies to all of the following
income items EXCEPT: - ANS-Prepaid rent
What is another name for a property tax? - ANS-Ad valorem tax
What is the basic concept behind TVM? - ANS-A dollar today is worth more than a
dollar tomorrow
Which of the following accounting methods results in the least favorable timing for
recognition of prepaid service income? - ANS-Standard Tax Accrual Method
Which of the following conditions would make it so that a taxpayer is required to
capitalize a prepaid expense (as compared to deducting it in the year it is paid)? -
ANS-The expense is for prepaid interest
Which of the following deduction is limited to 80% of adjusted taxable income (as
defined by the provision)? - ANS-Net operating losses
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