This Table Shows Data on Taxes Paid by Three Individuals

question 101

Multiple Choice

This table shows data on taxes paid by three individuals living in each of three countries: A, B, and C. The tax paid in dollars is based on the marginal tax rates assessed in each of the three countries. Assume that each individual earns an income of exactly $37,000, and there are no deductions or exemptions that need to be applied. Reference: Ref 17-2 (Table: A Cross-Country Comparison) According to the data in the table, which countries have a progressive tax system?

• A) A and B only
• B) B and C only
• C) B only
• D) None of the countries has it.

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Definitions:

Securities

Financial instruments that represent ownership positions in corporations (stock), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by an option.

Subscriptions Receivable

An amount owed by customers for subscription services or products that have been provided but not yet paid for.

Paid-in Capital

Paid-in capital is the amount of money that a company has received from shareholders in exchange for shares of stock, reflecting the capital that has been invested in the company beyond its par value.

Common Stock Subscribed

A commitment by investors to purchase shares of a company's common stock, where the shares are reserved for the subscribers until payment is made.