Total Income    MinusAdjustments    EqualsAdjusted Gross Income    MinusStandard Deduction or Itemized Deduction (Taxpayer’s Choice)    AndPersonal Exemptions    EqualsTaxable Income    To which applyRate Schedule or Tax Table    To calculateTax    MinusCredits    EqualsTotal Tax    Minuswithholding, Estimated Payments, and Other PaymentsEqualsTax Refund or Tax Due——————————————— Assuming one itemizes one’s deductions, which of the following is true with respect to Federal individual income taxation?  (see attached copy of Figure 9-1 as promised)

A maintenance of effort provision:

Which of the following would probably provide an incentive for a firm in a large city with many firms and households to conserve water provided by that city:

Interbudget manipulation:

As defined in the module lectures, which of the following is/are examples of a tax expenditure:

ABC Company produces and sells a single product. Data concerning that product appear below:     Selling price per unit $130.00 Variable expense per unit $41.60 Fixed expense per month $109,616     The break-even point in monthly dollar sales is closest to (PLEASE SHOW YOUR WORK BY USING THE HONORLOCK ON-SCREEN CALCULATOR):

ABC Company produces a single product called a Pong. ABC Company has the capacity to produce 60,000 Pongs each year. If ABC Company produces at capacity, the per unit costs to produce and sell one Pong are as follows:   Direct materials $15 Direct labor $12 Variable manufacturing overhead $8 Fixed manufacturing overhead $9 Variable selling expense $8 Fixed selling expense $3   The regular selling price for one Pong is $80. A special order has been received by ABC Company from XYZ Company to purchase 6,000 Pongs next year. If this special order is accepted, the variable selling expense will be reduced by 75%. However, ABC Company will have to purchase a specialized machine to engrave the XYZ Company name on each Pong in the special order. This machine will cost $9,000 and it will have no use after the special order is filled. The total fixed manufacturing overhead and selling expenses would be unaffected by this special order.    Assume ABC Company anticipates selling only 50,000 units of Pong to regular customers next year. If XYZ Company offers to buy the special order units at $65 per unit, the annual financial advantage (disadvantage) for the company as a result of accepting this special order should be (PLEASE SHOW YOUR WORK BY USING THE HONORLOCK ON-SCREEN CALCULATOR):

The following are ABC Company’s unit costs of making and selling an item at a volume of 8,000 units per month (which represents the company’s capacity): Manufacturing:        Direct materials $4      Direct labor $5      Variable overhead $2      Fixed overhead $8 Selling and administrative:        Variable $1      Fixed $6   Present sales amount to 7,000 units per month. An order has been received from a customer in a foreign market for 1,000 units. The order would not affect regular sales. Total fixed costs, both manufacturing and selling and administrative, would not be affected by this order. The variable selling and administrative costs would have to be incurred for this special order as well as all other sales.   What is the financial advantage (disadvantage) for the company from this special order if it prices the 1,000 units at $20 per unit (PLEASE SHOW YOUR WORK BY USING THE HONORLOCK ON-SCREEN CALCULATOR)?

The following data are for One Hoss Town in the fiscal year starting July 1, 2017:   Budgeted town expenditures                                            $10,000,000 Estimated revenue from other than property taxes           $  5,000,000 Net assessed value of property                                         $500,000,000   Assume 100% collection rate, and that the calculated rate does not exceed any state imposed property tax rate and does not violate any state imposed property tax revenue limitations. One Hoss Town’s  property tax rate per $100 of net assessed value will be:

Part I Choice 2 – Indicate your choice of Question and answer the question.