The Mythical Country of Traviola Imposes a Tax Based on the Number

question 10

Multiple Choice

The mythical country of Traviola imposes a tax based on the number of gold Tokens each taxpayer owns at the end of each year per the following schedule:
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Traviola's Token tax is a

• A)proportional tax.
• B)regressive tax.
• C)progressive tax.
• D)value-added tax.

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Definitions:

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Currency Exchange Rates

The price at which one country's currency can be converted into another's, important for international trade and investments.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period, usually a fiscal quarter or year.

Depreciation Expense

Represents the systematic reduction in the recorded cost of a fixed asset over its useful life.