Which of the Following Is True Regarding Real Property Taxes

question 134

Multiple Choice

Which of the following is true regarding real property taxes and personal property taxes?

• A)Personal property taxes are assessed on permanent structures and land.
• B)Real property taxes are assessed on cars and boats.
• C)All U.S. states currently impose personal property taxes.
• D)Real property taxes are generally easier to administer than personal property taxes.
• E)None of the choices are correct.

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Definitions:

Bond Premium

The additional amount over the face value for which a bond is sold, representing the difference between the bond's issue price and its nominal value.

Straight-line Amortization

A method of evenly spreading the cost of an intangible asset over its useful life for accounting and tax purposes.

Unamortized Premium

The portion of the premium paid over the par value of bonds that has not yet been amortized or written off over the life of the bond.

Bonds Payable

A liability account that records the amounts a company owes to bondholders by the bond's maturity date.