1. Lower or higher 2. Increase or Decrease 3. Higher or Lower 4. Lower or Higher

8. The tax system Understanding taxes Is the U.S. federal tax system for individuals progressive or regressive? O Progressive O Regressive You bought 1,000 shares of Tund Corp. stock for $60.59 per share and sold it for $82.35 per share after a few years. How will your galn or loss be treated when you file your taxes? O As a capital gain taxed at the long-term tax rate O As a capital gain taxed at the current ordinary-income tax rate taxable income. It Depreciation expenses directly affect a company's taxable income. An increase in depreciation expense will lead to a will tax deducted from a company's earnings, thus leading to a operating cash flow. of the Alternative Minimum Tax (AMT) or regular tax. According to a tax law established in 1969, taxpayers must pay the his To offset taxable income in a given year, ordinary corporate operating losses can be: Carried back for 5 years and carried forward for 10 years O Carried forward indefinitely