A Tax Structure Under Which an Individual Is Taxed $1,000

question 35

Multiple Choice

A tax structure under which an individual is taxed $1,000 per year regardless of income is

• A) unconstitutional.
• B) progressive.
• C) proportional.
• D) regressive.
• E) biased against higher-income groups.

---

Definitions:

Impairment Losses

Financial losses recognized when the carrying amount of an asset exceeds its recoverable amount, indicating the asset is not worth its current value on the balance sheet.

Consolidated Retained Earnings

Represents the cumulative amount of net income earned by a parent company and its subsidiaries over time, after dividends are paid to shareholders, consolidated to a single figure.

Consolidated Statement

A financial statement that aggregates the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries to reflect the total financial position and results of the group.

Financial Position

An entity's economic state, represented by its assets, liabilities, and equity at a given point in time.