Using the Following Choices, Show the Justification for Each Provision

question 80

Multiple Choice

Using the following choices, show the justification for each provision of the tax law listed.
a. Economic considerations
b. Social considerations
c. Equity considerations
d. Both a. and b.
-Import taxes (customs duties)

• A)Deferral of gains from involuntary conversions
• B)Carryforward of net operating losses
• C)"No change" is a possible result
• D)State income tax applied to a visiting nonresident
• E)IRS special agent
• F)Undoing the "piggyback" result
• G)Ideal budget goal as to new tax legislation
• H)Every state that has a general sales tax has one
• I)Imposed by all states and the Federal government
• J)Imposed by some states but not the Federal government
• K)Imposed only by the Federal government
• L)No correct match provided

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Definitions:

Stockholders' Equity

The ownership share of shareholders in a corporation, calculated as the value of assets minus liabilities.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is retained by the company for reinvestment.

Assets

Economic resources owned by a business or company that are expected to provide future benefits or value.

Par Value

The nominal or stated value of a stock or bond, set by the issuing company and not necessarily indicative of the market value.