,ACCESS Test Bank for McGraw-
k k k k
Hill's Taxation of Individuals and BusinessEntities 2023 Edit
k k k k k k k k
ion 14th Edition Spilker
k k k
Instructor’skManualk–kMcGraw-Hill’skTaxation,kbykSpilkerketkal.
Chapter 1 k k
An Introduction to Tax
k k k
INSTRUCTOR’S MANUAL k
Learning Objectives k
1-1.k Demonstratekhowktaxeskinfluencekbasickbusiness,kinvestment,kpersonal,kandkpoliticalkdecisions.k1-
2.k Discusskwhatkconstituteskaktaxkandkthekgeneralkobjectiveskofktaxation.
1-
3.k Describekthekdifferentktaxkratekstructureskandkcalculatekaktax.k1-
4.k Identifykthekvariouskfederal,kstate,kandklocalktaxes.
1-5.k Applykappropriatekcriteriaktokevaluatekalternatektaxksystems.
Teaching Suggestions k
Thiskchapterkprovideskankoverviewkofkwhyktaxeskarekimportant,kwhatkaktaxkis,khowktokcalculatekaktax,kvario
usktaxkrateskandktaxkratekstructures,kdifferentktypeskofkfederal,kstate,kandklocalktaxes,kandkhowktokevaluatekakt
axksystem.kOnekintentkofkthekchapterkisktokgetkstudentskthinkingkaboutkthekpervasivekinfluencekofktaxeskandkt
huskwhykitkiskimportantkforkakbusinesskorkaccountingkstudentktokunderstandktaxes.kDiscussingkhowktaxeskaff
ectkdecisionskthatktheykwillkfacek(buyingkakhouse,kinvestingkforkretirement,ketc.)kiskankeffectivekwayktokpiqu
ekstudents’kinterest.
Thiskchapterkalsokprovideskankopportunityktokmotivatekstudentskbykdiscussingkthekpoliticalkimportancekofkta
xeskandkthekdebatekoverkalternativektaxksystems.kThroughoutkmostkofkthekchapter,kyoukcanktiekthekmaterialkdi
scussedkbackktokthekdebatekoverkalternativektaxksystems.kThiskiskeasilykdonekinktheksectionkonkevaluatingkalte
rnativektaxksystemskandkalternativektaxkratekstructureskbutkmaykalsokbekdonekforkotherkpartskofkthektext.kForke
xample,kwhenkdiscussingkhowktokcalculatekaktax,kyoukcankpointkoutkthatkoncekthektaxkbasekiskcomputed,kitkisk
verykeasyktokcalculatekvirtuallykanyktax.kThekdifficultykiskinkdeterminingkthektaxkbase.kThekimplicationkofkthi
skunderstandingkiskthatkthektaxkratekstructurek(e.g.,kprogressivekversuskproportional)khasklittlekeffectkonktaxkc
omplexity.
Inkteachingkthiskchapter,kthektimekthatkyoukspendkinkclasskwillkvarykbasedkonkhowkmuchkdiscussionkthatkyoukw
antktokincorporatekregardingkevaluatingktaxksystemskandkimplicitktaxes.kMostkofkthekconceptskinkthiskchapterk
arekrelativelykstraightforward,kandkthus,kthekchapterkprovideskstudentskwithkankintroductionktoktaxkwithoutko
verwhelmingkthemkonkthekfirstkdaykorksokofkclass.kThiskiskparticularlykimportantkifkyourkstudentskhaveksomekt
repidationkregardingktheirkfirstktaxkcourse.
Implicitktaxkisktypicallykakdifficultkconceptkforkstudentsktokunderstand.kThektextkprovideskakgoodkoverviewk
ofkimplicitktax.kIfkyoukplanktokcoverkimplicitktaxkinksomekdetail,kyoukmightkalertkstudentskthatkthiskiskakdiffic
ultkconceptkandkthatktheykshouldkbekcarefulktokgetkfamiliarkwithkthiskdiscussionkinkthektextkpriorktokclass.
©kMcGrawkHillkLLC.kAllkrightskreserved.kNokreproductionkorkdistributionkwithoutkthekpriorkwrittenkconsentkofkMcGrawkHillkL
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,ACCESS Test Bank for McGraw-
k k k k
Hill's Taxation of Individuals and BusinessEntities 2023 Edit
k k k k k k k k
ion 14th Edition Spilker
k k k
Instructor’skManualk–kMcGraw-Hill’skTaxation,kbykSpilkerketkal.
Assignment Matrix k
LearningkObjectives TextkFeatures
Research
Planning
Forms
LO1
LO2
LO3
LO4
LO5
Difficulty
DQ1-1 5kmin. Easy X
DQ1-2 5kmin. Easy X
DQ1-3 5kmin. Easy X
DQ1-4 5kmin. Easy X
DQ1-5 5kmin. Medium X
DQ1-6 5kmin. Medium X
DQ1-7 5kmin. Medium X
DQ1-8 10kmin. Medium X
DQ1-9 5kmin. Medium X
DQ1-10 10kmin. Medium X
DQ1-11 15kmin. Medium X
DQ1-12 5kmin. Medium X
DQ1-13 15kmin. Medium X
DQ1-14 10kmin. Medium X
DQ1-15 5kmin. Easy X
DQ1-16 15kmin. Medium X
DQ1-17 5kmin. Easy X
DQ1-18 5kmin. Easy X
DQ1-19 10kmin. Medium X
DQ1-20 10kmin. Medium X
DQ1-21 10kmin. Easy X
DQ1-22 10kmin. Easy X
DQ1-23 15kmin. Medium X
DQ1-24 15kmin. Medium X
DQ1-25 15kmin. Medium X
DQ1-26 15kmin. Medium X
DQ1-27 15kmin. Medium X
DQ1-28 15kmin. Medium X
DQ1-29 15kmin. Medium X X
DQ1-30 20kmin. Medium X X
DQ1-31 15kmin. Medium X X
DQ1-32 15kmin. Medium X
DQ1-33 15kmin. Medium X
P1-34 20kmin. Medium X
P1-35 20kmin. Medium X
P1-36 20kmin. Medium X
P1-37 20kmin. Medium X
P1-38 20kmin. Medium X
P1-39 20kmin. Medium X
P1-40 20kmin. Medium X
©kMcGrawkHillkLLC.kAllkrightskreserved.kNokreproductionkorkdistributionkwithoutkthekpriorkwrittenkconsentkofkMcGrawkHillkL
LC.
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, ACCESS Test Bank for McGraw-
k k k k
Hill's Taxation of Individuals and BusinessEntities 2023 Edit
k k k k k k k k
ion 14th Edition Spilker k k k
Instructor’skManualk–kMcGraw-Hill’skTaxation,kbykSpilkerketkal.
P1-41 20kmin. Medium X
P1-42 20kmin. Hard X X
P1-43 15kmin. Medium X X X
P1-44 15kmin. Medium X X X
P1-45 15kmin. Medium X X X
P1-46 15kmin. Medium X X X
P1-47 20kmin. Hard X
P1-48 20kmin. Hard X
P1-49 20kmin. Hard X X
P1-50 20kmin. Hard X X
P1-51 20kmin. Hard X
P1-52 20kmin. Hard X
P1-53 20kmin. Hard X
P1-54 20kmin. Hard X
P1-55 20kmin. Hard X
P1-56 20kmin. Hard X
P1-57 25kmin. Hard X X X
P1-58 25kmin. Hard X X X
P1-59 25kmin. Medium X X
P1-60 25kmin. Medium X X
Lecture Notes k
1) WhokCareskAboutkTaxeskandkWhy?
a) Businesses
b) Politicians
c) Individuals
2) WhatkQualifieskaskakTax?
a) Definitionkofkaktax
i) Keykcomponentskofkdefinition:kpaymentkiskrequired,kimposedkbykakgovernmentkagency,kandk
notkdirectlyktiedktokanykbenefitkreceivedkbykthektaxpayerkfromkthekgovernment
b) Earmarkedktax—definitionkandkwhykthiskiskconsideredkaktax
c) QuizkstudentskonktaxkdefinitionkusingkexampleskinkthekPowerPointkslides.
3) HowktokCalculatekakTax
a) Taxk=kTaxkBasek×kTaxkRate
i) TaxkBase—whatkiskactuallyktaxed,kusuallykexpressedkinkmonetarykterms
ii) TaxkRate—levelkofktaxeskimposedkonkthektaxkbase,kusuallykexpressedkaskakpercentage
iii) Flatktaxes
iv) Graduatedktaxes
v) Brackets
b) Differentkwaysktokmeasurektaxkrates
i) Marginalktaxkrate
(1) Definition—
taxkratekthatkappliesktoktheknextkadditionalkincrementkofkaktaxpayer’sktaxablekincomek(orkd
eductions)
©kMcGrawkHillkLLC.kAllkrightskreserved.kNokreproductionkorkdistributionkwithoutkthekpriorkwrittenkconsentkofkMcGrawkHillkL
LC.
1-3
mynursytest.store
k k k k
Hill's Taxation of Individuals and BusinessEntities 2023 Edit
k k k k k k k k
ion 14th Edition Spilker
k k k
Instructor’skManualk–kMcGraw-Hill’skTaxation,kbykSpilkerketkal.
Chapter 1 k k
An Introduction to Tax
k k k
INSTRUCTOR’S MANUAL k
Learning Objectives k
1-1.k Demonstratekhowktaxeskinfluencekbasickbusiness,kinvestment,kpersonal,kandkpoliticalkdecisions.k1-
2.k Discusskwhatkconstituteskaktaxkandkthekgeneralkobjectiveskofktaxation.
1-
3.k Describekthekdifferentktaxkratekstructureskandkcalculatekaktax.k1-
4.k Identifykthekvariouskfederal,kstate,kandklocalktaxes.
1-5.k Applykappropriatekcriteriaktokevaluatekalternatektaxksystems.
Teaching Suggestions k
Thiskchapterkprovideskankoverviewkofkwhyktaxeskarekimportant,kwhatkaktaxkis,khowktokcalculatekaktax,kvario
usktaxkrateskandktaxkratekstructures,kdifferentktypeskofkfederal,kstate,kandklocalktaxes,kandkhowktokevaluatekakt
axksystem.kOnekintentkofkthekchapterkisktokgetkstudentskthinkingkaboutkthekpervasivekinfluencekofktaxeskandkt
huskwhykitkiskimportantkforkakbusinesskorkaccountingkstudentktokunderstandktaxes.kDiscussingkhowktaxeskaff
ectkdecisionskthatktheykwillkfacek(buyingkakhouse,kinvestingkforkretirement,ketc.)kiskankeffectivekwayktokpiqu
ekstudents’kinterest.
Thiskchapterkalsokprovideskankopportunityktokmotivatekstudentskbykdiscussingkthekpoliticalkimportancekofkta
xeskandkthekdebatekoverkalternativektaxksystems.kThroughoutkmostkofkthekchapter,kyoukcanktiekthekmaterialkdi
scussedkbackktokthekdebatekoverkalternativektaxksystems.kThiskiskeasilykdonekinktheksectionkonkevaluatingkalte
rnativektaxksystemskandkalternativektaxkratekstructureskbutkmaykalsokbekdonekforkotherkpartskofkthektext.kForke
xample,kwhenkdiscussingkhowktokcalculatekaktax,kyoukcankpointkoutkthatkoncekthektaxkbasekiskcomputed,kitkisk
verykeasyktokcalculatekvirtuallykanyktax.kThekdifficultykiskinkdeterminingkthektaxkbase.kThekimplicationkofkthi
skunderstandingkiskthatkthektaxkratekstructurek(e.g.,kprogressivekversuskproportional)khasklittlekeffectkonktaxkc
omplexity.
Inkteachingkthiskchapter,kthektimekthatkyoukspendkinkclasskwillkvarykbasedkonkhowkmuchkdiscussionkthatkyoukw
antktokincorporatekregardingkevaluatingktaxksystemskandkimplicitktaxes.kMostkofkthekconceptskinkthiskchapterk
arekrelativelykstraightforward,kandkthus,kthekchapterkprovideskstudentskwithkankintroductionktoktaxkwithoutko
verwhelmingkthemkonkthekfirstkdaykorksokofkclass.kThiskiskparticularlykimportantkifkyourkstudentskhaveksomekt
repidationkregardingktheirkfirstktaxkcourse.
Implicitktaxkisktypicallykakdifficultkconceptkforkstudentsktokunderstand.kThektextkprovideskakgoodkoverviewk
ofkimplicitktax.kIfkyoukplanktokcoverkimplicitktaxkinksomekdetail,kyoukmightkalertkstudentskthatkthiskiskakdiffic
ultkconceptkandkthatktheykshouldkbekcarefulktokgetkfamiliarkwithkthiskdiscussionkinkthektextkpriorktokclass.
©kMcGrawkHillkLLC.kAllkrightskreserved.kNokreproductionkorkdistributionkwithoutkthekpriorkwrittenkconsentkofkMcGrawkHillkL
LC.
1-1
mynursytest.store
,ACCESS Test Bank for McGraw-
k k k k
Hill's Taxation of Individuals and BusinessEntities 2023 Edit
k k k k k k k k
ion 14th Edition Spilker
k k k
Instructor’skManualk–kMcGraw-Hill’skTaxation,kbykSpilkerketkal.
Assignment Matrix k
LearningkObjectives TextkFeatures
Research
Planning
Forms
LO1
LO2
LO3
LO4
LO5
Difficulty
DQ1-1 5kmin. Easy X
DQ1-2 5kmin. Easy X
DQ1-3 5kmin. Easy X
DQ1-4 5kmin. Easy X
DQ1-5 5kmin. Medium X
DQ1-6 5kmin. Medium X
DQ1-7 5kmin. Medium X
DQ1-8 10kmin. Medium X
DQ1-9 5kmin. Medium X
DQ1-10 10kmin. Medium X
DQ1-11 15kmin. Medium X
DQ1-12 5kmin. Medium X
DQ1-13 15kmin. Medium X
DQ1-14 10kmin. Medium X
DQ1-15 5kmin. Easy X
DQ1-16 15kmin. Medium X
DQ1-17 5kmin. Easy X
DQ1-18 5kmin. Easy X
DQ1-19 10kmin. Medium X
DQ1-20 10kmin. Medium X
DQ1-21 10kmin. Easy X
DQ1-22 10kmin. Easy X
DQ1-23 15kmin. Medium X
DQ1-24 15kmin. Medium X
DQ1-25 15kmin. Medium X
DQ1-26 15kmin. Medium X
DQ1-27 15kmin. Medium X
DQ1-28 15kmin. Medium X
DQ1-29 15kmin. Medium X X
DQ1-30 20kmin. Medium X X
DQ1-31 15kmin. Medium X X
DQ1-32 15kmin. Medium X
DQ1-33 15kmin. Medium X
P1-34 20kmin. Medium X
P1-35 20kmin. Medium X
P1-36 20kmin. Medium X
P1-37 20kmin. Medium X
P1-38 20kmin. Medium X
P1-39 20kmin. Medium X
P1-40 20kmin. Medium X
©kMcGrawkHillkLLC.kAllkrightskreserved.kNokreproductionkorkdistributionkwithoutkthekpriorkwrittenkconsentkofkMcGrawkHillkL
LC.
1-2
mynursytest.store
, ACCESS Test Bank for McGraw-
k k k k
Hill's Taxation of Individuals and BusinessEntities 2023 Edit
k k k k k k k k
ion 14th Edition Spilker k k k
Instructor’skManualk–kMcGraw-Hill’skTaxation,kbykSpilkerketkal.
P1-41 20kmin. Medium X
P1-42 20kmin. Hard X X
P1-43 15kmin. Medium X X X
P1-44 15kmin. Medium X X X
P1-45 15kmin. Medium X X X
P1-46 15kmin. Medium X X X
P1-47 20kmin. Hard X
P1-48 20kmin. Hard X
P1-49 20kmin. Hard X X
P1-50 20kmin. Hard X X
P1-51 20kmin. Hard X
P1-52 20kmin. Hard X
P1-53 20kmin. Hard X
P1-54 20kmin. Hard X
P1-55 20kmin. Hard X
P1-56 20kmin. Hard X
P1-57 25kmin. Hard X X X
P1-58 25kmin. Hard X X X
P1-59 25kmin. Medium X X
P1-60 25kmin. Medium X X
Lecture Notes k
1) WhokCareskAboutkTaxeskandkWhy?
a) Businesses
b) Politicians
c) Individuals
2) WhatkQualifieskaskakTax?
a) Definitionkofkaktax
i) Keykcomponentskofkdefinition:kpaymentkiskrequired,kimposedkbykakgovernmentkagency,kandk
notkdirectlyktiedktokanykbenefitkreceivedkbykthektaxpayerkfromkthekgovernment
b) Earmarkedktax—definitionkandkwhykthiskiskconsideredkaktax
c) QuizkstudentskonktaxkdefinitionkusingkexampleskinkthekPowerPointkslides.
3) HowktokCalculatekakTax
a) Taxk=kTaxkBasek×kTaxkRate
i) TaxkBase—whatkiskactuallyktaxed,kusuallykexpressedkinkmonetarykterms
ii) TaxkRate—levelkofktaxeskimposedkonkthektaxkbase,kusuallykexpressedkaskakpercentage
iii) Flatktaxes
iv) Graduatedktaxes
v) Brackets
b) Differentkwaysktokmeasurektaxkrates
i) Marginalktaxkrate
(1) Definition—
taxkratekthatkappliesktoktheknextkadditionalkincrementkofkaktaxpayer’sktaxablekincomek(orkd
eductions)
©kMcGrawkHillkLLC.kAllkrightskreserved.kNokreproductionkorkdistributionkwithoutkthekpriorkwrittenkconsentkofkMcGrawkHillkL
LC.
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