Solutions Manual—Taxation of Individuals, by Spilker et al.
Solution Manual For
Mcgraw-Hill's Taxation Of Individuals 2025 Edition,
15th Edition Spilker
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
1
, Solutions Manual—Taxation of Individuals, by Spilker et al.
Solution Manual For
Mcgraw-Hill's Taxation Of Individuals 2025 Edition,
15th Edition Spilker
Chapter 1-14
Chapter 1
An Introduction To Tax
Discussion Questions
(1) [LO 1] Jessica’s Friend Zachary Once Stated That He Couldn’t Understand Why
Someone Would Take A Tax Course. Why Is This A Rather Naïve View?
Taxes Are A Part Of Everyday Life And Have A Financial Effect On Many Of The Major Personal
Decisions That Individuals Face (E.G., Investment Decisions, Evaluating Alternative Job Offers,
Saving For Education Expenses, Gift Or Estate Planning, Etc.).
(2) [LO 1] What Are Some Aspects Of Business That Require Knowledge Of Taxation?
What Are Some Aspects Of Personal Finance That Require Knowledge Of Taxation?
Taxes Play An Important Role In Fundamental Business Decisions Such As The Following:
What Organizational Form Should A Business Use?
Where Should The Business Locate?
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
2
, Solutions Manual—Taxation of Individuals, by Spilker et al.
How Should Business Acquisitions Be Structured?
How Should The Business Compensate Employees?
What Is The Appropriate Mix Of Debt And Equity For The Business?
Should The Business Rent Or Own Its Equipment And Property?
How Should The Business Distribute Profits To Its Owners?
One Must Consider All Transaction Costs (Including Taxes) To Evaluate The Merits Of A Transaction.
Common Personal Financial Decisions That Taxes Influence Include: Choosing Investments,
Retirement Planning, Choosing To Rent Or Buy A Home, Evaluating Alternative Job Offers, Saving
For Education Expenses, And Doing Gift Or Estate Planning.
(3) [LO 1] Describe Some Ways In Which Taxes Affect The Political Process In The
United States.
U.S. Presidential Candidates Often Distinguish Themselves From Their Opponents
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
3
, Solutions Manual—Taxation of Individuals, by Spilker et al.
Based Upon Their Tax Rhetoric. Likewise, The Major Political Parties Generally Have Very Diverse
Views Of The Appropriate Way To Tax The Public. Determining Who Is Taxed, What Is Taxed, And
How Much Is Taxed Are Difficult Questions. Voters Must Have A Basic Understanding Of Taxes To
Evaluate The Merits Of Alternative Tax Proposals Offered By Opposing Political Candidates And
Their Political Parties.
(4) [LO 2] Courtney Recently Received A Speeding Ticket On Her Way To The University.
Her Fine Was $200. Is This Considered A Tax? Why Or Why Not?
The $200 Speeding Ticket Is Not Considered A Tax. Instead, It Is Considered A Fine Or Penalty. Taxes
Differ From Fines And Penalties Because Taxes Are Not Intended To Punish Or Prevent Illegal
Behavior.
(5) [LO 2] Marlon And Latoya Recently Started Building A House. They Had To Pay
$300 To The County Government For A Building Permit. Is The $300 Payment A Tax? Why Or Why
Not?
The Building Permit Is Not Considered A Tax Because $300 Payment Is Directly Linked To A Benefit
That They Received (I.E., The Ability To Build A House).
(6) [LO 2] To Help Pay For The City’s New Stadium, The City Of Birmingham Recently Enacted A 1
Percent Surcharge On Hotel Rooms. Is This A Tax? Why Or Why Not?
The 1 Percent Surcharge Is A Tax. The 1 Percent Surcharge Is An Earmarked Tax – I.E., Collected For
A Specific Purpose. The Surcharge Is Considered A Tax Because The Tax Payments Made By
Taxpayers Do Not Directly Relate To The Specific Benefit Received By The Taxpayers.
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
4
Solution Manual For
Mcgraw-Hill's Taxation Of Individuals 2025 Edition,
15th Edition Spilker
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
1
, Solutions Manual—Taxation of Individuals, by Spilker et al.
Solution Manual For
Mcgraw-Hill's Taxation Of Individuals 2025 Edition,
15th Edition Spilker
Chapter 1-14
Chapter 1
An Introduction To Tax
Discussion Questions
(1) [LO 1] Jessica’s Friend Zachary Once Stated That He Couldn’t Understand Why
Someone Would Take A Tax Course. Why Is This A Rather Naïve View?
Taxes Are A Part Of Everyday Life And Have A Financial Effect On Many Of The Major Personal
Decisions That Individuals Face (E.G., Investment Decisions, Evaluating Alternative Job Offers,
Saving For Education Expenses, Gift Or Estate Planning, Etc.).
(2) [LO 1] What Are Some Aspects Of Business That Require Knowledge Of Taxation?
What Are Some Aspects Of Personal Finance That Require Knowledge Of Taxation?
Taxes Play An Important Role In Fundamental Business Decisions Such As The Following:
What Organizational Form Should A Business Use?
Where Should The Business Locate?
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
2
, Solutions Manual—Taxation of Individuals, by Spilker et al.
How Should Business Acquisitions Be Structured?
How Should The Business Compensate Employees?
What Is The Appropriate Mix Of Debt And Equity For The Business?
Should The Business Rent Or Own Its Equipment And Property?
How Should The Business Distribute Profits To Its Owners?
One Must Consider All Transaction Costs (Including Taxes) To Evaluate The Merits Of A Transaction.
Common Personal Financial Decisions That Taxes Influence Include: Choosing Investments,
Retirement Planning, Choosing To Rent Or Buy A Home, Evaluating Alternative Job Offers, Saving
For Education Expenses, And Doing Gift Or Estate Planning.
(3) [LO 1] Describe Some Ways In Which Taxes Affect The Political Process In The
United States.
U.S. Presidential Candidates Often Distinguish Themselves From Their Opponents
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
3
, Solutions Manual—Taxation of Individuals, by Spilker et al.
Based Upon Their Tax Rhetoric. Likewise, The Major Political Parties Generally Have Very Diverse
Views Of The Appropriate Way To Tax The Public. Determining Who Is Taxed, What Is Taxed, And
How Much Is Taxed Are Difficult Questions. Voters Must Have A Basic Understanding Of Taxes To
Evaluate The Merits Of Alternative Tax Proposals Offered By Opposing Political Candidates And
Their Political Parties.
(4) [LO 2] Courtney Recently Received A Speeding Ticket On Her Way To The University.
Her Fine Was $200. Is This Considered A Tax? Why Or Why Not?
The $200 Speeding Ticket Is Not Considered A Tax. Instead, It Is Considered A Fine Or Penalty. Taxes
Differ From Fines And Penalties Because Taxes Are Not Intended To Punish Or Prevent Illegal
Behavior.
(5) [LO 2] Marlon And Latoya Recently Started Building A House. They Had To Pay
$300 To The County Government For A Building Permit. Is The $300 Payment A Tax? Why Or Why
Not?
The Building Permit Is Not Considered A Tax Because $300 Payment Is Directly Linked To A Benefit
That They Received (I.E., The Ability To Build A House).
(6) [LO 2] To Help Pay For The City’s New Stadium, The City Of Birmingham Recently Enacted A 1
Percent Surcharge On Hotel Rooms. Is This A Tax? Why Or Why Not?
The 1 Percent Surcharge Is A Tax. The 1 Percent Surcharge Is An Earmarked Tax – I.E., Collected For
A Specific Purpose. The Surcharge Is Considered A Tax Because The Tax Payments Made By
Taxpayers Do Not Directly Relate To The Specific Benefit Received By The Taxpayers.
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
4
