Table 12-12 United States Income Tax Rates for a Single Individual,2002 and Individual,2002

question 215

Multiple Choice

Table 12-12
United States Income Tax Rates for a Single Individual,2002 and 2003.

-Refer to Table 12-12.Charles is a single person whose taxable income is $35,000 a year.What happened to his average tax rate between 2002 and 2003?

• A) It increased.
• B) It decreased.
• C) It did not change.
• D) We do not have enough information to answer this question.

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Definitions:

Fair Value

The likely receipts from offloading an asset or the expenditure to relocate a liability, in a systematic transaction at the market rate on the day of valuation.

Initial Value Method

An accounting method where investments are recorded at their acquisition cost without subsequent change except for impairments and certain adjustments.

Full-Accrual Totals

A method of accounting that records revenues when earned and expenses when incurred, regardless of when cash transactions occur.

Consolidation Worksheet

A consolidation worksheet is a tool used in the preparation of consolidated financial statements. It helps in the adjustment and elimination of intra-group transactions and balances among the parent and subsidiary companies.