Indicate whether the following statements are true or false:
_________ Decreasing one’s tax liability through legal methods is called tax avoidance, while illegally reducing taxes is called tax evasion.
_________ In a “closed” transaction, all tax-significant events have been completed. The marginal tax rate is computed as the total tax paid divided by the total income of the taxpayer.
_________ The marginal tax rate is the most important rate for decision making in tax planning situations.
_________ The timing tax planning technique takes advantage of deferring the payment of tax until a later year.

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