Solved by verified expert :1. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Que
Many states have balanced budgets because laws or constitutional amendments
preclude deficit spending.
a.
True
b. False
2. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q 2
The U.S. Federal government has a provision in the Constitution which precludes
deficit spending.
a.
True
b. False
3. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q 3
Revenue-neutral tax laws reduce deficits.
a.
True
b. False
4. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q 4
Longer class lives for depreciable property and the required use of
straight-line method of depreciation should dampen the tax incentive for
purchasing capital assets.
a.
True
b. False
5. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q 5
The Internal Revenue Code is a compilation of Federal tax legislation that
appears in Title 28 of the Internal Revenue Code.
a.
True
b. False
6. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q 6
Income from patents can qualify for capital gain treatment.
a.
True
b. False
7. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q 7
Saving leads to capital formation and thus makes funds available to finance
home construction and industrial expansion.
a.
True
b. False
8. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q 8
The corporate tax rate of 34 percent applies only to taxable income in excess
of $75,000.
a.
True
b. False
9. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q 9
The earned income tax credit is refundable.
a.
True
b. False
10. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q10
The deduction for charitable contributions can be explained by social
considerations.
a.
True
b. False
11. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q11
The Hope scholarship credit can be explained by economic considerations.
a.
True
b. False
12. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q12
The adoption tax credit can be explained by social considerations.
a.
True
b. False
13. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q13
Allowing a taxpayer to choose either a credit or a deduction for foreign taxes
paid can be explained by equity considerations.
a.
True
b. False
14. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q14
Neither the 1939 nor the 1954 Code substantially changed all the tax law
existing on the date of its enactment.
a.
True
b. False
15. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q15
Federal tax legislation generally originates in the Senate Finance Committee.
a.
True
b. False
16. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q16
Subchapter K refers to the “Partners and Partnerships” section of the Code.
a.
True
b. False
17. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q17
Subchapter C refers to the “Corporate Distributions and Adjustments” section of
the Code.
a.
True
b. False
18. CHAPTER 1—UNDERSTANDING AND WORKING WITH THE
FEDERAL TAX LAW Q18
Some Regulations are arranged in different sequence than the Code.
a.
True
b. False
