1.In a community property state (Texas, for example) half of the income earned from the services of one spouse is included in the gross income of the other spouse in a married filing jointly return AND in a married filing separately return.

True or False

2.When tax rates are increasing, the taxpayer must calculate which of the optimal tax strategies for deductions and income.

Multiple Choice

a.The taxpayer must consider both of these strategies.

b.The taxpayer must calculate whether the benefit ofdeferring incomeoutweighs the disadvantage of recognizing income in a higher tax rate year

c.The taxpayer must calculate whether the benefit ofaccelerating deductionsoutweighs the disadvantage of recognizing deductions in a lower tax rate year.

3.Which of these is a component of a tax?

Multiple Choice

a.Payment is imposed by a government agency.

b.Payment not tied directly to benefit received by the taxpayer.

c. Payment is required.

d. All of these are componentsof a tax.