83 Free Test Bank for Concepts in Federal Taxation 2012 19th Edition by Murphy

With various types of taxes such as income tax, gift tax, estate tax and employment tax, the subject of federal taxation is considered to be certainly tough for all students. Ultimately, learners often look for the best materials for this field to supplement and enhance their learning process in class. Notwithstanding, they really belong to you? How many percentage of content is seized firmly? Or it makes you confused about your qualifications? Necessary but not always effective! With the purpose of learning optimization, we would like to introduce 83 free test bank for Concepts in Federal Taxation 2012 19th Edition by Murphy Multiple Choice Questions with questions of accounting carefully selected from academic textbooks, completely free to use and display the answers immediately after submitting questions. Accountants are people understanding risk. Hopefully, after completion of the following questions, you will find complete confidence and peace of mind as soon as practicing on our test bank.

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Vertical equity: I. means that those taxpayers who have the greatest ability to pay the tax should pay the greatest proportion of the tax. II. means that two similarly situated taxpayers are taxed the same. III. is reflected in the progressive nature of the federal income tax system. IV. exists when Avis, a single individual with 4 dependent children, and Art, a single individual with no dependents, both pay $2,400 income tax on equal $26,000 annual salaries.

•  Statements III and IV are correct.
•  Statements II and III are correct.
•  Statements I and III are correct.
•  Only statement IV is correct.
•  Statements I, II, III, and IV are correct.

Which of the following are included among Adam Smith's criteria for evaluating a tax? I. Convenience. II. Fairness. III. Neutrality. IV. Economy.

•  Statements I and II are correct.
•  Statements I, II, and III are correct.
•  Statements I and IV are correct.
•  Statements II and III are correct.
•  Statements I, II, III, and IV are correct.

Maria is single and has a 2011 taxable income of $200,000. She also received $15,000 of tax-exempt income. Maria's effective tax rate is:

•  22.8%
•  23.7%
•  25.0%
•  28.0%
•  33.0%

Pay-as-you-go withholding is consistent with Adam Smith's criteria of

•  Certainty.
•  Convenience.
•  Economy.
•  Fairness.
•  Transparency.

Horizontal equity: I. means that those taxpayers who have the greatest ability to pay the tax should pay the greatest proportion of the tax. II. means that two similarly situated taxpayers are taxed the same. III. is reflected in the progressive nature of the federal income tax system. IV. exists when Avis, a single individual with 4 dependent children, and Art, a single individual with no dependents, both pay $2,400 income tax on equal $26,000 annual salaries.

•  Statements III and IV are correct.
•  Statements II and III are correct.
•  Statements I and III are correct.
•  Only statement IV is correct.
•  Statements I, II, III, and IV are correct.

When planning for an investment that will extend over several years, the ability to predict how the results of the investment will be taxed is important. This statement is an example of

•  Certainty.
•  Transparency
•  Equality.
•  Neutrality.
•  Fairness.

Jim and Anna are married and have a 2011 taxable income of $280,000. They also received $20,000 of tax-exempt income. Their effective tax rate is:

•  22.7%
•  23.3%
•  24.9%
•  33.0%
•  35.0%

Frank and Fran are married and have a 2011 taxable income of $280,000. They also received $20,000 of tax-exempt income. Their average tax rate is:

•  23.2%
•  24.9%
•  22.3%
•  33.0%
•  35.0%

Which of the following payments meets the IRS definition of a tax?

•  Sewer fee charged added to a city trash collection bill.
•  A special assessment paid to the county to pave a street.
•  A levy on the value of a deceased taxpayer's estate.
•  Payment of $300 to register an automobile. The $300 consists of a $50 registration fee and $250 based on the weight of the auto.

Katie pays $10,000 in tax-deductible property taxes. Katie’s marginal tax rate is 25%, average tax rate is 24%, and effective tax rate is 20%. Katie's tax savings from paying the property tax is:

•  $ 1,600
•  $ 2,000
•  $ 2,400
•  $ 2,500
•  $10,000

Terry is a worker in the country Pretoria. His salary is $46,000 and his taxable income is $52,000. Pretoria imposes a Worker Tax as follows: Employers withhold a tax of 20% of all wages and salaries. If taxable income as reported on the employee's income tax return is greater than $50,000, an additional 10% tax is withheld on all income. Terry's marginal tax rate is:

•  0%
•  10%
•  20%
•  30%

Bob and Linda are married and have a 2011 taxable income of $280,000. They also received $20,000 of tax-exempt income. Their marginal tax rate is:

•  23.5%
•  24.9%
•  28.0%
•  33.0%
•  35.0%

Jaun plans to give $5,000 to the American Diabetes Association. Jaun's marginal tax rate is 28%. His average tax rate is 25%. Jaun's after-tax cost of the contribution is

•  $1,250
•  $1,400
•  $3,600
•  $3,750
•  $5,000

If a taxpayer has a choice of receiving income in the current year versus the following year, which of the following tax rates is important in determining the year in which he should include the income?

•  Average.
•  Effective.
•  Composite.
•  Marginal.

Andrea is single and has a 2011 taxable income of $199,800 She also received $15,000 of tax-exempt income. Andrea's average tax rate is

•  22.8%
•  23.3%
•  25.4%
•  28.5%
•  33.0%