Multiple Choice

Both economic and social considerations can be used to justify:

a$.$ Disallowance of any deduction for expenditures deemed to be contrary to public policy $($e$.$g$.,$

fines, penalties, illegal kickbacks, bribes to government officials$).$

b$.$ Various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain

additional education.

c$.$ Allowance of a deduction for state and local income taxes paid.

d$.$ Favorable tax treatment for accident and health plans provided for employees and financed by

employers.

Multiple Choice

Social considerations can be used to justify:

a$.$ Allowance of a credit for child care expenses.

b$.$ Allowing a Federal income tax deduction for state and local sales taxes.

c$.$ Allowing excess capital losses to be carried over to other years.

d$.$ Allowing accelerated amortization for the cost of installing pollution control facilities.

Multiple Choice

Allowing a tax credit for certain solar energy property can be justified:

a$.$ As promoting administrative feasibility.

b$.$ Based on the wherewithal to pay concept.

c$.$ As promoting a government policy to use alternative energy sources.

d$.$ As helping small businesses.

Multiple Choice

Federal tax legislation generally originates in which of the following?

a$.$ Internal Revenue Service

b$.$ Senate Finance Committee

c$.$ House Ways and Means Committee

d$.$ Senate Floor

Multiple Choice

Which of the following sources has the highest tax authority?

a$.$ Revenue Ruling

b$.$ Internal Revenue Code section

c$.$ Regulations

d$.$ Revenue Procedure

Multiple Choice

Which of the following types of Regulations has the highest tax validity?

a$.$ Interpretive

b$.$ Temporary

c$.$ Proposed

d$.$ Legislative