Using the Following Choices, Show the Justification for Each Provision

question 144

Multiple Choice

Using the following choices, show the justification for each provision of the tax law listed.
a. Economic considerations
b. Social considerations
c. Equity considerations
d. Both a. and b.
-More rapid expensing for tax purposes of the costs of installing pollution control devices.

• A)Deferral of gains from involuntary conversions
• B)Carryforward of net operating losses
• C)"No change" is a possible result
• D)State income tax applied to a visiting nonresident
• E)IRS special agent
• F)Undoing the "piggyback" result
• G)Ideal budget goal as to new tax legislation
• H)Every state that has a general sales tax has one
• I)Imposed by all states and the Federal government
• J)Imposed by some states but not the Federal government
• K)Imposed only by the Federal government
• L)No correct match provided

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Definitions:

Raw Material Price

The cost of basic materials before being processed or used in manufacturing.

Net Operating Income

Earnings derived from a company's everyday business operations, excluding taxes and other non-operational expenses.

Standard Cost

A predetermined cost of manufacturing, administering, or marketing a product under normal conditions.

Selling and Administrative Expenses

The sum of all direct and indirect selling expenses and all general and administrative expenses of a company.