If Tax Rates Are Decreasing

question 103

Multiple Choice

If tax rates are decreasing:

• A) taxpayers should accelerate income.
• B) taxpayers should defer deductions.
• C) taxpayers should defer income.
• D) taxpayers should defer deductions and accelerate income.
• E) None of the choices are correct.

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Definitions:

Calcitonin

A hormone produced by the thyroid gland that lowers blood calcium levels by activating osteoblasts.

Thyroid Gland

An endocrine gland, consisting of irregularly spheroid follicles, lying in front and to the sides of the upper part of the trachea, in a horseshoe shape, with two lateral lobes connected by a narrow central portion, the isthmus; occasionally an elongated offshoot, the pyramidal lobe, passes upward from the isthmus in front of the trachea. It is supplied by branches from the external carotid and subclavian arteries, and its nerves are derived from the middle cervical and cervicothoracic ganglia of the sympathetic system. It secretes thyroid hormone and calcitonin.

Steroidal

Relating to or characterized by the presence of steroids, which are a large class of organic compounds with a characteristic molecular structure.

Cell Membrane

The outer limit of a cell that is thin and selectively permeable. It controls the movement of substances into and out of the cell.