Assignment 2 (Complete Answers) – University of South Africa – Semester 2, 2025 – Practice Questions with Solutions

Tax3701 assignment 2 (complete answers) semester 2 2025 - due 18
September 2025
B. 47% - -What percentage of federal tax revenue is paid by individuals?
A. 25%
B. 47%
C. 35%
D. 60%

-C. total tax divided by total income - -How do you calculate the effective tax rate?
A. total tax divided by taxable income
B. total income divided by total tax
C. total tax divided by total income
D. look at the last bracket used

-B. Taxes assessed to fund a specific purpose - -What is an earmarker tax?
A. taxes assessed only on certain taxpayers
B. Taxes assessed to fund a specific purpose
C. taxes assessed for a certain time period
D. Taxes assessed to discourage behavior

-D. eliminates tax advantages of buying out of state goods - -What is the purpose of use tax?
A. encourages taxpayers to buy out of state
B. use tax is easy to enforce
C. Use tax is a progressive tax
D. eliminates tax advantages of buying out of state goods

-B. October 15th - -paula got an extension to file her return. when is the latest she could file
her return?
A. September 15th
B. October 15th
C. August 15th
D. November 15th

-B. May 15th, 2021 - -Allen filed on 5/15/15 understating his income by 30%. When does the
statute expire (no fraud)?
A. April 15th, 2018
B. May 15th, 2021
C. April 15th, 2021
D. May 15th, 2018

-C. U.S. District court - -Which of the following courts is the only court that provides for a jury
trial?
A. Tax court
B. U.S. court of federal claims