ALSO GIVE EXPLANATION FOR THE RIGHT ANSWER

7. Which of the following statements is true? a. A credit is a dollar-for-dollar reduction of taxable income. b. The after-tax cash flow for an increase in income is equal to the increase in income times the marginal tax rate. c. The individual federal income tax is an example of a regressive tax system. d. The statute of limitations for fraud or a substantial omission of income never ends. e. None of the answers provided is correct. 18. Tom contributes $10,000 to his church. His marginal tax rate is 22% and his effective tax rate is 20%. What is his tax savings from this deduction? a. $2,200 b. $2,000 c. $7,800 d. $8,000 e. None of the answers provided is correct. 19. Which of the following statements is true? a. A trial court must abide by the rulings of other trial courts. b. The Tax Court must abide by the rulings in the Circuit Courts of Appeal outside the taxpayer's area. c. The Tax Court must abide by the rulings in the Circuit Court of Appeal in the taxpayer's area. d. Circuit Courts of Appeal must agree with each other on their rulings. e. A loser can be assured of a hearing before the Supreme Court