Chapter 1, Problem 46DQ

Which option is the correct definition of tax base? Select one: a. Tax base is the amount the asset or liability is recorded at in the accounting records. b. Tax base is a comparing the balance sheet derived using accounting rules with balance sheet that would be derived from taxation rules c. Tax base is the recognition of assets and liabilities in the balance sheet based on the differences between accounting and tax values of assets and liabilities. d. Tax base is defined as the amount that is attributed to an asset or liability for tax purposes.

MC: Topic: Income Taxation One of the following is a characteristic of a tax. * Based on contract Assignable Payable in money Absolutely legislative in nature

Define each of the following terms:a. Interest tax shields; value of tax shield