7. Mrs. King is a U.S. citizen who permanently resides in South Africa. Which of the following statements is true?

Select one:

a.

Mrs. King can elect whether to pay tax to the United States or to South Africa.

b.

The U.S. government has jurisdiction to tax Mrs. King.

c.

The U.S. government has no jurisdiction to tax Mrs. King because she does not live in the United States.

d.

The U.S. government has no jurisdiction to tax Mrs. King because she does not earn any income from a source within the United States.

8. The city of Springvale imposes a net income tax on businesses operating within its jurisdiction. The tax equals 1% of income up to $100,000 and 1.5% of income in excess of $100,000. The Springvale Bar and Grill generated $782,000 net income this year. Compute its city income tax.

Select one:

a.

$10,230

b.

$11,730

c.

$11,230

d.

$10,730