An Example of a Tax Based on Benefits Received Is

question 186

Multiple Choice

An example of a tax based on benefits received is the _______ tax.

• A) personal income
• B) sales
• C) marginal
• D) property

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Definitions:

Residual Value

The estimated value of an asset at the end of its useful life.

Double Declining-balance

An accelerated method of depreciation where the book value of an asset is reduced at double the rate of its straight-line depreciation each year.

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting the use and wear and tear of the asset.

Units-of-production

A method of depreciation that assigns an asset's cost based on its usage, activities, or output, instead of the passage of time.