8. The tax system Aa Aa E Understanding taxes In general, is the US federal tax system progressive or regressive? O Progressive O Regressive You bought 1,000 shares of Tund Corp. stock for $75.00 per share and sold it for $77.25 per share within the same year. How will your gain or loss be treated when you file your taxes? O As a capital gain taxed at the current ordinary-income tax rate O As a capital gain taxed at the long-term tax rate Depreciation expenses directly affect a company's taxable income. An increase in depreciation expense will lead toa tax deducted From a company's earnings, thus leading to a taxable income. It will operating cash flow. of the Alternative Minimum Tax (AMT) According to a tax law established in 1969, taxpayers must pay the or regular tax. To offset taxable income in a given year, ordinary corporate operating losses can be: O Carried back for 2 years and carried forward for 20 years O Carried back for 5 years and carried forward for 10 years