1. Question :
(TCO 2) This type of tax is assessed on specific goods and services at the time of purchase.

Student Answer: Estate Inheritance CORRECT Excise General sales Value added Instructor Explanation: Chapter 4, page 106 Points Received: 1 of 1 Comments:

Question 2. Question :
(TCO 2) A $3,000 deposit to a tax-deferred retirement account for a person in a 25% tax bracket would result in a reduced tax bill of

Student Answer: $3,000. $2,250. $1,500. CORRECT $750. $300. Instructor Explanation: Chapter 4, pages 109, 112–113 Points Received: 1 of 1 Comments:

Question 3. Question :
(TCO 2) A person has $3,000 in medical expenses and an adjusted gross income of $34,000. If taxpayers are allowed to deduct the amount of medical expenses that exceed 7.5% of adjusted gross income, what would be the amount of the deduction in this situation?

Student Answer: $225 CORRECT $450 INCORRECT $2,550 $3,000 $34,000 Instructor Explanation: Chapter 4, page 109 Points Received: 0 of 1 Comments: $450 Chapter 4, page 109

Question 4. Question :
(TCO 2) You have invested in the stock market and receive dividends. The dividend income must be reported as _____ income.

Student Answer: passive earned CORRECT investment capital gain excluded Instructor Explanation: Chapter 4, page 108 Points Received: 1 of 1 Comments:

Question 5. Question :
(TCO 2) _____ allows for a certain amount of money to be deducted from adjusted gross income, and the total can be based upon yourself, a spouse, and the number of dependents

Student Answer: A tax credit CORRECT An exemption An exclusion Earned income Portfolio income. Instructor Explanation: Chapter 4, page 111 Points Received: 1 of 1