Table 12-9 -Refer to Table 12-9

question 6

Essay

Table 12-9
$$\begin{array} { | l | l | } \hline \text { Income } & \text { Amount of Tax } \\\hline \$ 50,000 & \$ 5,000 \\\hline \$ 60,000 & \$ 5,500 \\\hline \$ 70,000 & \$ 6,000 \\\hline\end{array}$$
-Refer to Table 12-9. Does the tax system achieve vertical equity?

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Definitions:

Adjusted Trial Balance

is a listing of all company accounts that will appear on the financial statements after making end-of-period adjustments.

Reversing Entry

An accounting entry made at the beginning of an accounting period to reverse or cancel out a previous adjusting entry.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Net Income

The amount of profit that remains after all operating expenses, interest, taxes, and dividends have been subtracted from total revenues.