Table 12-16 The Table Below Provides Information on the 4 Households That

question 1

Multiple Choice

Table 12-16
The table below provides information on the 4 households that make up a small economy and how much they would pay in taxes under 3 types of taxes.

-Refer to Table 12-16.In this economy Tax A exhibits

• A) horizontal and vertical equity.
• B) horizontal equity but not vertical equity.
• C) vertical equity but not horizontal equity.
• D) neither horizontal nor vertical equity.

---

Definitions:

Capital Balances

The amount of equity ownership that different parties have in a company, typically represented by the shares held or the amount invested in the business.

Withdrawal

The act of taking money out of a bank account, or the removal of assets from a business by the owner for personal use.

Partnership Assets

Assets that are owned by a partnership and are used in the business's operations, typically including things like cash, property, and equipment.

Income Ratios

Metrics that evaluate a company's ability to generate earnings relative to its revenue, equity, assets, or other financial metrics.