Using the Following Choices, Show the Justification for Each Provision

question 6

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.
-Tax credits available for the purchase of a vehicle that uses alternative (nonfossil) fuels.

• 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

---

Definitions:

Marginal Revenue

Change in revenue resulting from a one-unit increase in output.

Employee Effort Level

The degree to which an employee is motivated to exert effort in their work tasks and responsibilities.

Wage Rate

Rephrased: Wage Rate is the compensation paid by employers to employees for their labor, often determined per hour worked or by piece-rate.

Incentive Scheme

An incentive scheme is a plan or system designed to motivate and encourage employees to perform better by offering rewards or benefits.