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Which of the following taxes are regressive, rather than progressive? A. Federal estate tax B. None of these OC. State general sales tax OD. Federal individual income tax E. Federal gift tax

Which of the following taxes are regressive, rather than progressive? A. Federal estate tax B. None of these OC. State general sales tax OD. Federal individual income tax E. Federal gift tax

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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For business deductions, which of the following is true (mark all that apply): A. An expense is not deductible under Federal law unless Congress creates a specific provision allowing it. B. None of these are true. OC. An expense has been held to be ordinary if it is normal, usual, or customary in the type of business conducted by the taxpayer, and an expense need not be recurring to be considered ordinary. D. An expense has been held to be necessary if a prudent businessperson would incur the same expense and the expense is expected to be appropriate and helpful in the taxpayer's business. OE. The courts have held that for any expense to be ordinary and necessary, it must also be reasonable in amount. If an expense is unreasonable, it is not deductible.
Transcribed Image Text:For business deductions, which of the following is true (mark all that apply): A. An expense is not deductible under Federal law unless Congress creates a specific provision allowing it. B. None of these are true. OC. An expense has been held to be ordinary if it is normal, usual, or customary in the type of business conducted by the taxpayer, and an expense need not be recurring to be considered ordinary. D. An expense has been held to be necessary if a prudent businessperson would incur the same expense and the expense is expected to be appropriate and helpful in the taxpayer's business. OE. The courts have held that for any expense to be ordinary and necessary, it must also be reasonable in amount. If an expense is unreasonable, it is not deductible.
Question 6 Which of the following taxes are regressive, rather than progressive? A. Federal estate tax B. None of these OC. State general sales tax D. Federal individual income tax E. Federal gift tax
Transcribed Image Text:Question 6 Which of the following taxes are regressive, rather than progressive? A. Federal estate tax B. None of these OC. State general sales tax D. Federal individual income tax E. Federal gift tax
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