L$0\mathrm{.}7,8$ Discuss the probable justification for each of the following aspects of the tax law. Be sure to use concepts and terminology covered in this chapter.

Critical Thinking

a$.$ A tax credit is allowed for amounts spent to furnish care for minor children while the parent works.

b$.$ Deductions for interest on home mortgage and property taxes on a personal residence.

c$.$ The income$-$splitting benefits of filing a joint return.

d$.$ Fines and penalties are not deductible.

e$.$ Net operating losses of a current year can be carried forward to profitable years.

f$.$ A taxpayer who sells property on an installment basis can recognize gain on the sale over the period the payments are received.

g$.$ The exclusion from Federal tax of certain interest income from state and local bonds.

h$.$ Prepaid income is taxed to the recipient in the year received and not in the year earned.