©THEBRIGHT EXAM SOLUTIONS
11/05/2024 12:06 PM
Tax Ch 1 Practice Problems & exercises
Exam Questions With Correct Answers
True - answer✔True or False: The marginal tax rate is the rate of tax that will be paid on the next dollar
of income or
the rate of tax that will be saved by the next dollar of deduction.
True - answer✔True or False: Tax evasion occurs when a taxpayer uses fraudulent methods or deceptive
behavior to
hide actual tax liability.
True - answer✔True or False: The US Congress creates the majority of tax laws in the United States of
America.
False - answer✔True or False: A tax deduction is always better than a tax credit
1. Equality
2. Certainty
3. Convenience
4. Economy - answer✔Briefly state Adam Smith's four requirements for a good tax system
1. Legislative
2. Administrative
3. Judicial - answer✔Briefly state the three primary sources of tax law.
30% - answer✔Rawle Alkins is single and has a 2017 taxable income of $100,000. He also received
$20,000 of taxexempt
income. Rawle's taxes paid is $30,000. Rawle's average tax rate is:
25% - answer✔Rawle Alkins is single and has a 2017 taxable income of $100,000. He also received
$20,000 of taxexempt
income. Rawle's taxes paid is $30,000. Rawle's effective tax rate is:
11/05/2024 12:06 PM
Tax Ch 1 Practice Problems & exercises
Exam Questions With Correct Answers
True - answer✔True or False: The marginal tax rate is the rate of tax that will be paid on the next dollar
of income or
the rate of tax that will be saved by the next dollar of deduction.
True - answer✔True or False: Tax evasion occurs when a taxpayer uses fraudulent methods or deceptive
behavior to
hide actual tax liability.
True - answer✔True or False: The US Congress creates the majority of tax laws in the United States of
America.
False - answer✔True or False: A tax deduction is always better than a tax credit
1. Equality
2. Certainty
3. Convenience
4. Economy - answer✔Briefly state Adam Smith's four requirements for a good tax system
1. Legislative
2. Administrative
3. Judicial - answer✔Briefly state the three primary sources of tax law.
30% - answer✔Rawle Alkins is single and has a 2017 taxable income of $100,000. He also received
$20,000 of taxexempt
income. Rawle's taxes paid is $30,000. Rawle's average tax rate is:
25% - answer✔Rawle Alkins is single and has a 2017 taxable income of $100,000. He also received
$20,000 of taxexempt
income. Rawle's taxes paid is $30,000. Rawle's effective tax rate is:
