Federal Estate Tax Quiz

Which tax accounts for more than one-third of revenues in the Federal budget, second only to the income tax in its contribution?

FICA tax

What is the tax rate for the Social Security tax?

6.2%

What is the maximum base for the Social Security tax in 2022?

$147,000

What is the tax rate for the Medicare tax?

1.45% Signup and view all the answers

Which of the following is NOT one of the chapter objectives addressed in Chapter 1?

Identifying the various taxes affecting business entities and individuals Signup and view all the answers

What is the purpose of the Ice Breaker in the PowerPoint deck for Chapter 1?

To introduce the chapter and review learning objectives Signup and view all the answers

Which of the following is NOT a type of tax mentioned in the text?

Excise tax Signup and view all the answers

What are some of the considerations that underlie the tax law, as mentioned in the text?

All of the above Signup and view all the answers

Which of the following is true about the Federal estate tax?

The estate tax base is determined by the decedent's gross estate. Signup and view all the answers

Which of the following is a deduction from the gross estate in arriving at the taxable estate?

Funeral and administration expenses Signup and view all the answers

What is the purpose of the Federal gift tax?

To complement the estate tax Signup and view all the answers

What is the annual exclusion amount for taxable gifts in 2022?

$16,000 Signup and view all the answers

According to the text, what are some reasons why taxes are ultimately paid by individuals?

Taxes are indirectly paid by individuals through higher prices, lower dividends, and lower wages Signup and view all the answers

What are some types of taxes that corporations may be subject to?

Income taxes, employment taxes, sales taxes, and various excise taxes Signup and view all the answers

What are some reasons why taxation is a crucial topic for accounting and finance professionals?

All of the above Signup and view all the answers

What is one of the roles of tax practitioners in data analysis?

Identify potential audit issues Signup and view all the answers

Which one of the following is true about tax rates?

Tax rates can be progressive, proportional, or regressive. Signup and view all the answers

Which of the following is an example of a proportional tax?

State retail sales tax Signup and view all the answers

What is the marginal tax rate?

The tax rate applicable to the next dollar of income Signup and view all the answers

What is the effective tax rate?

The total tax expense as a percentage of pretax book income Signup and view all the answers

Which tax is a major source of revenue for most state and local governments?

General sales tax Signup and view all the answers

Which tax is due at least quarterly when the Federal excise tax return (Form 720) is filed?

Federal excise tax on alcohol Signup and view all the answers

Which types of taxes are included in transaction taxes?

Federal and state excise taxes Signup and view all the answers

What is the role of excise taxes in financing the Federal government since World War II?

Steadily declined Signup and view all the answers

Which type of property is typically assessed property taxes on equipment and other tangible property?

Inventory Signup and view all the answers

Which type of property is typically assessed an ad valorem property tax?

Intangibles Signup and view all the answers