Assume the State of California Plans to Amend Its Personal

question 69

Multiple Choice

Assume the state of California plans to amend its personal income tax laws to allow parents to reduce their tax by the cost of infant car seats. Which of the following statements is true?

• A) The amendment creates a tax preference for parents who purchase infant car seats.
• B) The amendment is intended to change social behavior.
• C) The amendment increases the neutrality of the tax law.
• D) Both the amendment creates a tax preference for parents who purchase infant car seats and is also intended to change social behavior are true.

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Definitions:

Double-Entry Bookkeeping

A system of recording and classifying business transactions that maintains the balance of the accounting equation.

Annual Report

Summary of a firm’s financial information, products, and growth plans for owners and potential investors.