**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.- [ ] **C.** 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.- [ ] **E.** 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- C. State general sales tax- D. Federal individual income tax- E. Federal gift tax**Explanation:**A regressive tax is one where the tax rate decreases as the amount subject to taxation increases, meaning it takes a larger percentage of income from low-income earners than from high-income earners. In this question, the correct answer is:- **C. State general sales tax**State general sales tax is considered regressive because it takes a larger percentage of income from lower-income individuals, as everyone pays the same rate regardless of income level.

Answered: Which of the following taxes are…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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