Tax Planning Involves the Timing of Income and Deductions

question 63

Multiple Choice

Tax planning involves the timing of income and deductions. General rules of thumb to follow when planning include
I.deferring recognition of income.
II.putting deductions into the year with highest marginal tax rate.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Autonomous Morality

The second stage of moral development in Piaget’s theory, displayed by older children (about 10 years of age and older). The child becomes aware that rules and laws are created by people and that, in judging an action, one should consider the actor’s intentions as well as the consequences.

Punishment

A consequence aimed at reducing a behavior, typically involving unpleasant or undesirable outcomes for the recipient.

Immanent Justice

The belief often held by children that moral wrongs will be immediately punished and virtues rewarded, regardless of human intervention.

Autonomous Moral Reasoning

Refers to the ability of individuals to make ethical decisions based on their own principles and understanding rather than external pressures.