In the Following Situation the Tax System Is A)progressive Through All Levels of Income
B)proportional Throughout All Levels

question 103

Multiple Choice

In the following situation the tax system is
$\begin{array} { r r r r } \text { Taxable income}&\$ 1,000 & \$ 2,000 & \$ 4,000 & \$ 8,000 \\ \text { Tax payments}&\$ 10 & \$ 30 & \$ 90 & \$ 270 \end{array}$

• A)progressive through all levels of income
• B)proportional throughout all levels of income
• C)regressive throughout all levels of income
• D)based on the benefits-received principle
• E)there is insufficient information to answer the question

---

Definitions:

LIFO

An inventory valuation approach called Last In, First Out dictates that the newest items in inventory are the first to be accounted for as sold or used.

Cost of Goods Sold

Cost of Goods Sold represents the direct costs attributable to the production of the goods sold by a company, including material, labor, and overhead costs.

Lower-of-Cost

An accounting principle that states inventory is to be recorded at the purchase cost or the market value, whichever is lower.

Market Valuation

The estimated value or worth of an asset or a company determined through various methods, including market prices and financial modeling.