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Strayer ACC 307 WK 5 Midterm Exam

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Question;ACC 307 WK 5 Midterm Exam;1. The ratification of the Sixteenth Amendment to the U.S.;Constitution was necessary to validate the Federal income tax on;corporations. True False;2. Before the Sixteenth Amendment to the Constitution was ratified, there was no valid Federal income tax on individuals. True False;3. 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%. True False;4. The Federal income tax on individuals generates more revenue than the Federal income tax on corporations. True False;5. The pay-as-you-go feature of the Federal income tax on individuals conforms to Adam Smith?s canon of certainty. True False;6. Because the law is complicated, most individual taxpayers are not;able to complete their Federal income tax returns without outside;assistance. True False;7. The FICA tax (Medicare component) on wages is progressive since the tax due increases as wages increase. True False;8. The Federal estate and gift taxes are examples of progressive taxes. True False;9. The Federal excise tax on cigarettes is an example of a proportional tax. True False;10. Currently, the Federal income tax is more progressive than it ever has been in the past. True False;11. Mona inherits her mother?s personal residence, which she converts;to a furnished rent house. These changes should not affect the amount;of ad valorem property taxes levied on the properties. True False;12. A fixture will be subject to the ad valorem tax on realty rather than the ad valorem tax on personalty. True False;13. If property tax rates are not changed, the amount of ad valorem taxes imposed on realty will remain the same. True False;14. The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business use personalty. True False;15. A Federal excise tax is still imposed on admission to theaters. True False;16. There is no Federal excise tax on hotel occupancy. True False;17. The Federal gas-guzzler tax applies only to automobiles manufactured overseas and imported into the U.S. True False;18. Unlike the Federal counterpart, the amount of the state excise taxes on gasoline varies from state to state. True False;19. The states that impose a general sales tax also have a use tax. True False;20. Sales made by mail order are not exempt from the application of a general sales (or use) tax. True False;21. Two persons who live in the same state but in different counties may not be subject to the same general sales tax rate. True False;22. States impose either a state income tax or a general sales tax, but not both types of taxes. True False;23. A safe and easy way for a taxpayer to avoid local and state sales;taxes is to have the purchase sent to an address in another state that;levies no such taxes. True False;24. On transfers by death, the Federal government relies on an estate;tax, while states impose an estate tax, an inheritance tax, both taxes;or neither tax. True False;25. An inheritance tax is a tax on a decedent?s right to pass property at death. True False;26. One of the major reasons for the enactment of the Federal estate;tax was to prevent large amounts of wealth from being accumulated within;the family unit. True False;27. Under Clint?s will, all of his property passes to either the;Lutheran Church or to his wife. No Federal estate tax will be due on;Clint?s death in 2012. True False;28. Under a state inheritance tax, two heirs, a cousin and a son of the deceased, would be taxed at the same rate. True False;29. The annual exclusion, currently $13,000, is available for gift but not estate tax purposes. True False;30. In 2012, Jos?, a widower, sells land (fair market value of;$100,000) to his daughter, Linda, for $50,000. Jos? has made a taxable;gift of $50,000. True False;31. Julius, a married taxpayer, makes gifts to each of his six;children. A maximum of twelve annual exclusions could be allowed as to;these gifts. True False;32. One of the motivations for making a gift is to save on income taxes. True False;33. The formula for the Federal income tax on corporations is the same as that applicable to individuals. True False;34. A state income tax can be imposed on nonresident taxpayers who earn income within the state or on an itinerant basis. True False;35. For state income tax purposes, a majority of states allow a deduction for Federal income taxes. True False;36. Some states use their state income tax return as a means of collecting unpaid sales and use taxes. True False;37. No state has offered an income tax amnesty program more than once. True False;38. For Federal income tax purposes, there never has been a general amnesty period. True False;39. Under state amnesty programs, all delinquent and unpaid income taxes are forgiven. True False;40. When a state decouples from a Federal tax provision, it means that this provision will not apply for state income tax purposes. True False;41. The principal objective of the FUTA tax is to provide some measure of retirement security. True False;42. Currently, the tax base for the Medicare component of the FICA is not limited to a dollar amount. True False;43. A parent employs his twin daughters, age 18, in his sole proprietorship. The daughters are not subject to FICA coverage. True False;44. Unlike FICA, FUTA requires that employers comply with state as well as Federal rules. True False;45. A major disadvantage of a flat tax type of income tax is its complexity. True False;All Questions are Included...

 

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