Using the Following Choices, Show the Justification for Each Provision

question 148

Multiple Choice

Using the following choices, show the justification for each provision of the tax law listed.
a. Economic considerations
b. Social considerations
c. Equity considerations
d. Both a. and b.
-A small business corporation can elect to avoid the corporate income tax.

• A)Deferral of gains from involuntary conversions
• B)Carryforward of net operating losses
• C)"No change" is a possible result
• D)State income tax applied to a visiting nonresident
• E)IRS special agent
• F)Undoing the "piggyback" result
• G)Ideal budget goal as to new tax legislation
• H)Every state that has a general sales tax has one
• I)Imposed by all states and the Federal government
• J)Imposed by some states but not the Federal government
• K)Imposed only by the Federal government
• L)No correct match provided

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Definitions:

Shale

A fine-grained sedimentary rock that can be a source of petroleum and natural gas.

Conventionally Extracted Oil

Refers to oil obtained through traditional drilling methods where natural pressure pushes the oil to the surface or it is pumped out mechanically.

Oil Prices

The cost per barrel of crude oil as determined by global supply and demand dynamics.

Megawatts

A unit of power equal to one million watts, commonly used to measure the output of power plants or the amount of energy consumed by large entities.