Which of the Following Types of Taxes Rely Solely on "Income

question 101

Multiple Choice

Which of the following types of taxes rely solely on "income" as the tax base for determining the amount of tax liability?
I.Sales Tax
II.Property Tax
III.Gift Tax
IV.Social Security Tax
V.Excise Tax
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• A)Statements I, II, III, IV, and V are correct.
• B)Statements I, III, and IV are correct.
• C)Statements II and IV are correct.
• D)Only statement IV is correct.
• E)None of the above types of taxes relies on income for its tax base.

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Definitions:

Treasury Bonds

Long-term government securities issued with a fixed interest rate and maturity of generally more than 10 years.

Brokerage Commission

The charge imposed by a broker for conducting trades or offering specific services.

Interest Revenue

Income earned from lending funds or depositing funds in interest-bearing accounts, often reported as part of non-operating income.

Accrued Interest

Interest that has been earned but not yet received or recorded.