Thomas Franklin Claimed an Additional $3,000 in Deductions He Knowingly

question 60

Multiple Choice

Thomas Franklin claimed an additional $3,000 in deductions he knowingly knew he did not qualify for so he could reduce his tax bill.This is referred to as tax:

• A)avoidance.
• B)acceleration.
• C)evasion.
• D)delaying.
• E)deferment.

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Definitions:

Market Rate

The current price or interest rate at which securities, commodities, or currencies are traded in a competitive and public market.

Straight-line Method

A method of allocating a fixed asset's cost evenly over its useful life for the purpose of depreciation.

Par Value

The face value of a bond or stock as stated by the issuing company, which may not reflect its market value.

Semiannual

Occurring twice a year; a term often used in the context of interest payments, dividends, or certain financial reporting periods.