1. When evaluating the timing of revenue and deductions in tax planning we consider two main factors:

a. avoiding and evading

b. tax rates and tax locations

c. present value and tax rates

d. present value and tax locations

e. conversion and shifting

2. The _______________ allows the IRS to collapse a series of related transactions into one transaction to determine the tax consequences of the transaction.

a. substance-over-form doctrine

b. economic substance doctrine

c. step-transaction doctrine

d. business purpose doctrine

3. The _______________ requires transactions to have a substantial purpose other than tax reduction and a non-tax economic effect.

a. substance-over-form doctrine

b. step-transaction doctrine

c. business purpose doctrine

d. economic substance doctrine

4. What is the after-tax benefit of earning $1,000 today if your marginal tax rate is 30% and your discount rate is 10%?

a. 900

b. 850

c. 1,000

d. 700

5. What is the after-tax benefit of earning $1,000 a year from today if your marginal tax rate is 30% and your discount rate is 10%?

a. 909

b. 636

c. 700

d. 727