Indicate whether the following statements are true or false:

Decreasing one’s tax liability through legal methods is called tax planning, while illegally reducing taxes is called tax evasion.

In a “closed” transaction, all tax-significant events have been completed.

The marginal tax rate is computed as the total tax paid divided by the total income of the taxpayer.

The marginal tax rate is the most important rate for decision making in tax planning situations.

The timing tax planning technique usually takes advantage of deferring the payment of tax until a later year.