Question

Correctly answer each part of question #8

In general, is the U.S. federal tax system progressive or regressive? Regressive O Progressive 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 gain 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 Depreciation expenses directly affect a company's taxable income. An increase in depreciation expense will lead to a taxable income. It will operating cash flow. tax deducted from a company's earnings, thus leading to a If a taxpayer is liable to pay s8,950 under AMT law but $7,500 according to the regular tax system, the taxpayer wil need to pay taxes according to the To offset taxable income in a given year, ordinary corporate operating losses can be: O Carried back for 2 years and carried forward for 20 years O Carried back for 5 years and carried forward for 10 years

Answer 1

1)	In general, is the US tax system progressive or regressive?
	*Progressive
2)	Shares of Tund Corp stock:
	*As a capital gain taxed at the long-term tax rate
3)	Depreciation expenses…………………………….An increase in
	………….decrease in taxable income. It will reduce tax……..
	leading to a increase of operating cash flow.
4)	If a tax payer…………………………according to the AMT law.
5)	To offset……………………………………………losses can be:
	*Carried back for 2 years and carried forward for 20 years.