Hi can you please solve this? if yes then please with explanation. subject is general account The tax law requires that capital gains and losses be separatedfrom other types of gains and losses because an alternative taxcalculation may be used when taxable income includes net long-term capital gain.a. Trueb. False

The tax law requires that capital gains and losses be separated from other types of gains and losses…

Answered: The tax law requires that capital gains…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 46P

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Similar questions

Which of the following is not a cause of a difference between pretax financial income and taxable income in a given period? a. operating loss carryforwards b. permanent differences c. applicable tax rates d. temporary differences
The definition of gross income in the tax law is: All items specifically listed as income in the tax law All cash payments received for goods provided and services performed All income from whatever source derived All income from whatever source derived unless the income is earned illegally
Which of the following is an acceptable method of accounting under the tax law? The accrual method The hybrid method The cash method All of the above are acceptable None of the above
1. It is the exploitation by the taxpayer of legally permissible alternative tax rates or methods of assessing taxable property or income in order to avoid or reduce tax liability. a. Capitalization b. Shifting c. Evasion d. Avoidance
Which of the following tax concept(s) allow for the deferral of gains on nonrecognition transactions? Capital recovery concept II. Ability-to-pay concept Oa. Only statement I is correct. Ob. Only statement II is correct. Oc. Both statements are correct. Od. None of these statements are correct.
If an amount is ordinary income to a recipient: O it must also be a capital gain O It may also be included in the recipient's assessable income via a statutory income provision but the rules about ordinary income will prevail. O It may also be included in the recipient's assessable income via a statutory income provision. O fit is also included in the recipient's assessable income via a statutory income provision then usually the statutory income provision will prevail. A tax differs from a user charge in a user pays system in that: A user charge is applied arbitrarily in cases of emergency whereas a tax is applied systematically and according to predetermined principles. The government is obliged to repay the monies that it raises through a tax. A user charge is applied to a particular good or service supplied by the government. The government is obliged to pay interest on monies that it raises through borrowings.
Which is a correct statement? * Gains between related parties are exempt from income tax Losses between related parties are deductible Gains between related parties are taxable All of the above Which is a deductible tax expense? * Surcharges and penalties O Stock transaction tax Real property tax on business properties O Special assessment
1.The definition of gross income in the tax law is: A. All items specifically listed as income in the tax law B. All cash payments received for goods provided and services performed C. All income from whatever source derived D. All income from whatever source derived unless the income is earned illegally 2.Which of the following is not taxable for income tax purposes? A.Prizes B.Severance pay C.Gifts D.Partnership income E.All of the above are taxable 3.All of the following items are taxable to the taxpayer receiving them, except: A.Life insurance proceeds B.Unemployment compensation C.Embezzled funds D.Prizes E.Gambling winnings
6. There is no taxable income until such income is recognized. Taxable income is recognized when the (BEQ) a. taxpayer fails to include the income in his income tax retum. b. income has been actually received in money or its equivalent. income has been received, either actually or constructively. d. transaction that is the source of the income is consummated. CS Scanned with CamScanner
It refers to a flow of wealth to the taxpayer which is not treated as part of gross income for purposes of computing the taxpayer’s taxable income. a. Deductions b. Exceptions c. Exclusions d. Any of the above
TRUE OR FALSE?1st statement: Interest income must be included in the computation of gross income if it was not subjected to final tax. 2nd statement: Compensation constructively paid must be included in the computation of gross income if it was nor previously subjected to withholding tax.
Amounts that are made available to a taxpayer without substantial restrictions are included in gross income under which of the following legal doctrines? Assignment of Income Doctrine Constructive Receipt Doctrine Cohan Doctrine Recovery of Capital Doctrine

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The tax law requires that capital gains and losses be separated from other types of gains and losses because an alternative tax calculation may be used when taxable income includes net long- term capital gain. a. True b. False