Value Added Tax and Instructor Explanation
1. Question : (TCO D) A residence in Brevard County has an assessed value of $150,000. Its owner qualifies for an old age exemption of $10,000 and a homestead exemption of $20,000. The property tax rate is $5 per $100 AV. What will be the property tax bill on this property?
Student Answer: $7,500
$7,000
$6,500
$6,000 Instructor Explanation: @ Chapter 10. This owner has an adjusted (for exemptions) AV of $150,000-$30,000 = $120,000. If the tax rate is $5 per $100 of AV, then the tax bill will amount to ($5) ($1200) = $6,000.
Points Received: 4 of 4 Comments:
2. Question : (TCO E) Federal government taxes consumption mainly through:
Student Answer: general retail sales taxes.
value added taxes (VAT).
selective excise taxes.
payroll taxes. Instructor Explanation: Chapter 9.
Points Received: 0 of 4 Comments:
3. Question : (TCO E) With reference to tax systems, the principle ofcollectability asserts that:
Student Answer: a tax must be collected at a reasonable cost to society.
a tax must be collected by the government agency which imposed the tax. a tax must be collected within 90 days of its imposition.
a tax must be paid by cash, check, money order, or electronic transfer. Instructor Explanation: Chapter 7; Lecture.
Points Received: 4 of 4 Comments:
4. Question : (TCO E) Which of the following pieces of evidence would by itself allow a judgment about the regressivity or progressivity of a tax?
Student Answer: High-income families have higher tax bills than do low-income families. The richest 5% of the population pay 30% of the total tax collected. Per-capita tax payments by rich families are higher than per-capita tax payments by poor families. Low-income families pay out a higher proportion of their income in the form of tax than do high-income families.
Student Answer: $7,500
$7,000
$6,500
$6,000 Instructor Explanation: @ Chapter 10. This owner has an adjusted (for exemptions) AV of $150,000-$30,000 = $120,000. If the tax rate is $5 per $100 of AV, then the tax bill will amount to ($5) ($1200) = $6,000.
Points Received: 4 of 4 Comments:
2. Question : (TCO E) Federal government taxes consumption mainly through:
Student Answer: general retail sales taxes.
value added taxes (VAT).
selective excise taxes.
payroll taxes. Instructor Explanation: Chapter 9.
Points Received: 0 of 4 Comments:
3. Question : (TCO E) With reference to tax systems, the principle ofcollectability asserts that:
Student Answer: a tax must be collected at a reasonable cost to society.
a tax must be collected by the government agency which imposed the tax. a tax must be collected within 90 days of its imposition.
a tax must be paid by cash, check, money order, or electronic transfer. Instructor Explanation: Chapter 7; Lecture.
Points Received: 4 of 4 Comments:
4. Question : (TCO E) Which of the following pieces of evidence would by itself allow a judgment about the regressivity or progressivity of a tax?
Student Answer: High-income families have higher tax bills than do low-income families. The richest 5% of the population pay 30% of the total tax collected. Per-capita tax payments by rich families are higher than per-capita tax payments by poor families. Low-income families pay out a higher proportion of their income in the form of tax than do high-income families.