According to the Supreme Court, would it be good tax policy to use income as computed by financial accounting principles as the correct measure of income for Federal income tax purposes? Explain.

Question

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Answer 1

Textbook Question

Chapter 4, Problem 1DQ

According to the Supreme Court, would it be good tax policy to use income as computed by financial accounting principles as the correct measure of income for Federal income tax purposes? Explain.

Expert Solution & Answer

To determine

Explain the use of income as measure for federal income tax purposes.

Explanation of Solution

As per the Supreme Court in Thor Power Tool Co. vs. Comm.,” the key goal of the financial accounting is to provide necessary information to the management, creditors, shareholders, and all others who are more concerned.”

In this case, accountant acts as a protector of the accounting information from the parties who might mislead the information. Tax system plays a very vital role in making equitable revenue collection from the individuals, company and others.

Conclusion

Thus, above are the uses of income as a measure for federal income tax purpose.

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Students have asked these similar questions

For the following independent cases, determine whether economic income is present and, if so, whether it must be included in gross income (i.e., is it realized and recognized for tax purposes?).

Explain each of the following statements independently: a. Tax systems should be fair. b. The tax calculation will not be correct whenever income tax preferences exist. c. Fiscal policies are used to judge tax systems and achieve government objectives.

Answer 2

Textbook Question

Chapter 4, Problem 1DQ

According to the Supreme Court, would it be good tax policy to use income as computed by financial accounting principles as the correct measure of income for Federal income tax purposes? Explain.

Expert Solution & Answer

To determine

Explain the use of income as measure for federal income tax purposes.

Explanation of Solution

As per the Supreme Court in Thor Power Tool Co. vs. Comm.,” the key goal of the financial accounting is to provide necessary information to the management, creditors, shareholders, and all others who are more concerned.”

In this case, accountant acts as a protector of the accounting information from the parties who might mislead the information. Tax system plays a very vital role in making equitable revenue collection from the individuals, company and others.

Conclusion

Thus, above are the uses of income as a measure for federal income tax purpose.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 4, Problem 1DQ

According to the Supreme Court, would it be good tax policy to use income as computed by financial accounting principles as the correct measure of income for Federal income tax purposes? Explain.

Expert Solution & Answer

To determine

Explain the use of income as measure for federal income tax purposes.

Explanation of Solution

As per the Supreme Court in Thor Power Tool Co. vs. Comm.,” the key goal of the financial accounting is to provide necessary information to the management, creditors, shareholders, and all others who are more concerned.”

In this case, accountant acts as a protector of the accounting information from the parties who might mislead the information. Tax system plays a very vital role in making equitable revenue collection from the individuals, company and others.

Conclusion

Thus, above are the uses of income as a measure for federal income tax purpose.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 4, Problem 1DQ

According to the Supreme Court, would it be good tax policy to use income as computed by financial accounting principles as the correct measure of income for Federal income tax purposes? Explain.

Expert Solution & Answer

To determine

Explain the use of income as measure for federal income tax purposes.

Explanation of Solution

As per the Supreme Court in Thor Power Tool Co. vs. Comm.,” the key goal of the financial accounting is to provide necessary information to the management, creditors, shareholders, and all others who are more concerned.”

In this case, accountant acts as a protector of the accounting information from the parties who might mislead the information. Tax system plays a very vital role in making equitable revenue collection from the individuals, company and others.

Conclusion

Thus, above are the uses of income as a measure for federal income tax purpose.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Explain the use of income as measure for federal income tax purposes.

Explanation of Solution

As per the Supreme Court in Thor Power Tool Co. vs. Comm.,” the key goal of the financial accounting is to provide necessary information to the management, creditors, shareholders, and all others who are more concerned.”

In this case, accountant acts as a protector of the accounting information from the parties who might mislead the information. Tax system plays a very vital role in making equitable revenue collection from the individuals, company and others.

Conclusion

Thus, above are the uses of income as a measure for federal income tax purpose.

Answer 8

Expert Solution & Answer

To determine

Explain the use of income as measure for federal income tax purposes.

Explanation of Solution

As per the Supreme Court in Thor Power Tool Co. vs. Comm.,” the key goal of the financial accounting is to provide necessary information to the management, creditors, shareholders, and all others who are more concerned.”

In this case, accountant acts as a protector of the accounting information from the parties who might mislead the information. Tax system plays a very vital role in making equitable revenue collection from the individuals, company and others.

Conclusion

Thus, above are the uses of income as a measure for federal income tax purpose.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Explain the use of income as measure for federal income tax purposes.

Answer 12

Explanation of Solution

As per the Supreme Court in Thor Power Tool Co. vs. Comm.,” the key goal of the financial accounting is to provide necessary information to the management, creditors, shareholders, and all others who are more concerned.”

In this case, accountant acts as a protector of the accounting information from the parties who might mislead the information. Tax system plays a very vital role in making equitable revenue collection from the individuals, company and others.

Answer 13

Conclusion

Thus, above are the uses of income as a measure for federal income tax purpose.

Answer 14

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According to the Supreme Court, would it be good tax policy to use income as computed by financial accounting principles as the correct measure of income for Federal income tax purposes? Explain.

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