Federal Taxation Chapter 1 Questions
and Answers
A married taxpayer has taxable income $47,861. You have calculated tax liability using
the tax tables and using the tax rate schedule. What can you say about the two figures?
- Tax liability determined using the tax tables will be more than tax liability determined
using the tax rate schedules
- Tax liability determined using the tax tables will be less than tax liability determined
using the tax rate schedules
- Tax liability determined using the tax tables will be the same as tax liability determined
using the tax rate schedules
- The answer cannot be determined with the information provided - ANSWER-- Tax
liability determined using the tax tables will be more than tax liability determined using
the tax rate schedules
A tax rate that decreases as the tax base decreases is an example of what kind of tax
rate structure?
- Progressive
- Proportional
- Regressive
- Recessive - ANSWER-Progressive
A tax rate that decreases as the tax base increases is an example of what kind of tax
rate structure?
- Progressive
- Proportional
- Regressive
- Recessive - ANSWER-Regressive
Arno and Bridgette are married and have combined W-2 income of $74,612. They paid
$344 when they filed their taxes. How much income tax did their employers withhold
during the year?
- $5350
- $7694
- $8230
- The answer cannot be determined with the information provided - ANSWER-- The
answer cannot be determined with the information provided
Eddie, a single taxpayer, has W-2 income of $39,238. Using the tax tables he has
determined that his tax liability is
- $2,886
- $3,077
- $4,326
and Answers
A married taxpayer has taxable income $47,861. You have calculated tax liability using
the tax tables and using the tax rate schedule. What can you say about the two figures?
- Tax liability determined using the tax tables will be more than tax liability determined
using the tax rate schedules
- Tax liability determined using the tax tables will be less than tax liability determined
using the tax rate schedules
- Tax liability determined using the tax tables will be the same as tax liability determined
using the tax rate schedules
- The answer cannot be determined with the information provided - ANSWER-- Tax
liability determined using the tax tables will be more than tax liability determined using
the tax rate schedules
A tax rate that decreases as the tax base decreases is an example of what kind of tax
rate structure?
- Progressive
- Proportional
- Regressive
- Recessive - ANSWER-Progressive
A tax rate that decreases as the tax base increases is an example of what kind of tax
rate structure?
- Progressive
- Proportional
- Regressive
- Recessive - ANSWER-Regressive
Arno and Bridgette are married and have combined W-2 income of $74,612. They paid
$344 when they filed their taxes. How much income tax did their employers withhold
during the year?
- $5350
- $7694
- $8230
- The answer cannot be determined with the information provided - ANSWER-- The
answer cannot be determined with the information provided
Eddie, a single taxpayer, has W-2 income of $39,238. Using the tax tables he has
determined that his tax liability is
- $2,886
- $3,077
- $4,326
