Which of the Following Changes in the U

question 41

Multiple Choice

Which of the following changes in the U.S. tax code has been enacted in recent decades, disproportionately benefiting the wealthy?

• A) elimination of the capital gains tax
• B) reduction in the capital gains tax rate
• C) equalization of the capital gains tax rate and the income tax rate
• D) elimination of off-shore tax shelters

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Definitions:

Inventory

The total of all goods and materials held by a business for the purpose of resale, production, or use in operations.

Purchases

The acquisition of goods or services for the purpose of resale or use in the production of goods for sale.

Purchase Discounts

A reduction in the price paid for goods or services, often granted by the seller as an incentive for early payment.

Freight-In

Freight-in concerns the shipping costs of receiving goods to be sold or used in production, added to the cost of purchased inventory.