Question & Answer

How might the development of new financial instruments affect a central bank’s conduct of monetary policy?

David and Lilly Fernandez have determined their tax liability on their joint tax return to be $3,100. They have made prepayments of $1,900 and also have a child tax credit of $2,000. What is the amount of their tax refund or taxes due?

Given the following tax structure, what minimum tax would need to be assessed on Shameika to make the tax progressive with respect to average tax rates?

What is meant by the term graduated measuring device?

Consider the argument that in the modern world of large-scale short-term international financial movements, the ability of individual countries to affect their exchange rate is very limited.

Why is ultraviolet light favored over visible light in photolithography?

Given the following tax structure, what tax would need to be assessed on Venita to make the tax horizontally equitable?

Would this uncertainty have a similar or a different effect on exporting companies and companies using imported inputs?

Consider the following tax rate structure.  Is it horizontally equitable?  Why or why not?  Is it vertically equitable?  Why or why not?

Consider the following tax rate structure.  Is it horizontally equitable?  Why or why not?  Is it vertically equitable?  Why or why not?

Consider the following tax rate structure.  Is it horizontally equitable?  Why or why not?  Is it vertically equitable?  Why or why not?

Consider the following tax rate structure.  Is it horizontally equitable?  Why or why not?  Is it vertically equitable?  Why or why not?

What is meant by the paradox of aggregates? Of what importance might they be for how we analyse macroeconomic problems?

Congress would like to increase tax revenues by 10 percent.  Assume that the average taxpayer in the United States earns $65,000 and pays an average tax rate of 15 percent.  If the income effect is in effect for all taxpayers, what average tax rate will result in a 10 percent increase in tax revenues?  This is an example of what type of forecasting?   Answer:

Using the Internet, find a comparison of income tax rates across states.  What state currently has the highest income tax rate?  In considering individual tax burdens across states, what other taxes should you consider?

Benita is concerned that she will not be able to complete her tax return by April 15.  Can she request an extension to file her return?  By what date must she do so? Assuming she requests an extension, what is the latest date that she could file her return this year without penalty?

Approximately what percentage of tax returns does the IRS audit?  What are the implications of this number for the IRS’s strategy in selecting returns for audit?

Explain the difference between the DIF system and the National Research Program. How do they relate to each other?

Horatio and Kelly were divorced at the end of last year. Neither Horatio nor Kelly remarried during the current year and Horatio moved out of state. Determine the filing status of Horatio and Kelly for the current year in the following independent situations:

Describe the differences between the three types of audits in terms of their scope and taxpayer type.

Simon just received a 30-day letter from the IRS indicating a proposed assessment. Does he have to pay the additional tax?  What are his options?

Compare and contrast the three trial-level courts.

State how each of the following items is reflected in the financial statements. (a) Change from FIFO to LIFO method for inventory valuation purposes. (b) Charge for failure to record depreciation in a previous period. (c) Litigation won in current year, related to prior period. (d) Change in the realizability of certain receivables. (e) Write-off of receivables. (f) Change from the percentage-of-completion to the completed-contract method for reporting net income.

What are the basic differences between regulations, revenue rulings, and private letter rulings?

Compare and contrast the three types of tax law sources and give examples of each.