A tax credit reduces:

(1pts)

the amount of tax owed

income subject to self-employment tax

ordinary taxable income

the marginal tax rate

11)

The cash method of reporting taxable income has the potential for wide changes in income if the crop production from two years is sold in the same tax year.

(1pts)

True False

12)

Sales of crops and feeder livestock are usually taxed as both ordinary income and self employment income.

(1pts)

True False