Exemptions and Deductions Are Used

question 105

Multiple Choice

Exemptions and deductions are used

• A)to add to taxes that must be paid.
• B)by taxpayers to reduce the amount of income subject to tax.
• C)to determine the type of tax structure.
• D)to determine what items are subject to sales taxes.

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Definitions:

Research and Development

A systematic activity combining both basic and applied research, and aimed at discovering solutions to problems or creating new goods and knowledge.

Rule of Reason

A doctrine developed by the United States Supreme Court in antitrust litigation, which states that not all actions deemed to restrain trade are automatically illegal, but must be evaluated on a case-by-case basis.

Joint Ventures

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity, with profits and losses shared among them.

Sherman Act

A foundational antitrust law in the United States that outlaws monopolistic practices and promotes competition.