Which Statement Is True

question 150

Multiple Choice

Which statement is true?

• A)The Kemp-Roth Tax Cut of 1981 and the Tax Reform Act of 1986 both lowered federal personal income tax receipts.
• B)The Kemp-Roth Tax Cut of 1981 and the Tax Reform Act of 1986 raised federal personal income tax receipts.
• C)The Kemp-Roth Tax Cut of 1981 raised federal personal income tax receipts while the Tax Reform Act of 1986 lowered them.
• D)The Kemp-Roth Tax Cut of 1981 lowered federal personal income tax receipts while the Tax Reform Act of 1986 raised them.

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Definitions:

Voting Stock

Shares that give the holder the right to vote on company matters, such as electing the board of directors or other corporate policies.

Foreign Corporation

A company that is incorporated in a country other than the one in which it is doing business.

Inventory

The total amount of goods and materials a business holds for the purpose of resale or production.

Consolidated Income Tax Return

A single income tax return filed by a parent company and its subsidiaries, combining their tax liabilities into one form.