Using the Legend Provided, Classify Each Statement Accordingly

question 56

Multiple Choice

Using the legend provided, classify each statement accordingly. In all cases, assume that taxable income is being adjusted to arrive at current E & P for 2016.
-Interest received from municipal bonds in 2016.

• A)Increase
• B)Decrease
• C)No effect

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Definitions:

Consumers' Burden

The part of the incidence of a tax borne by consumers, often reflected in higher prices or reduced consumption of taxed goods.

Efficiency Loss

The reduction in economic productivity that happens when the balance for a product or service is either not attained or unattainable.

Excise Tax

A tax imposed on the sale of specific goods or services, such as tobacco, alcohol, and gasoline, often with the aim of reducing their consumption.

Antigens

Substances that the immune system recognizes as foreign or dangerous, triggering an immune response.