Using the Following Choices, Show the Justification for Each Provision

question 104

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.
-A deduction for certain expenses (interest and taxes) incident to home ownership.

• 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:

Anchoring Effect

The inadequate adjustment of subsequent estimates from an initial estimate that serves as an anchor.

Anchoring Effect

A cognitive bias where an individual relies too heavily on an initial piece of information (anchor) when making decisions.

Anchoring Effect

A cognitive bias where an individual's decisions or estimates are influenced by an initial piece of information (anchor).

Cognitive Bias

A systematic pattern of deviation from norm or rationality in judgment, where individuals create their own "subjective reality" from their perception.