Using the Following Choices, Show the Justification for Each Provision

question 3

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.
-Discriminant Index Function (DIF)

• 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:

Quarter-end Payments

Financial transactions or payments due at the end of each quarter of a fiscal year.

RRSP

A financial plan in Canada designed to help individuals save for retirement, offering tax advantages.

Compounded Monthly

Interest that is calculated on the principal and the previously earned interest on a monthly basis, leading to the accumulation of increasingly larger amounts.

Month-end Withdrawals

Financial transactions to remove money from an account or investment at the end of the month, often for budgeting or payment purposes.