1. Which of the following is not a way of reducing taxable income?

a. Reducing deductions

b. Deferring income

c.	Investing in tax shelters

d. Using tax-exempt income

2. Which of the following deductible expenses can be prepaid for tax purposes?

a. Charitable contributions

b. All of these

c. Personal property taxes

d. Medical expenses

3. When you file your federal income tax you may take a subtraction from your taxable income called an exemption for each person legally defined as your

a. tenant.

b. child

c. parent

d. dependent.