Attempts: Keep the Highest: /5 7. The tax system Understanding taxes Is the U.S. federal tax system for individuals progressive or regressive? O Progressive O Regressive You bought 1,000 shares of Tund Corp. stock for $60.59 per share and sold it for $82.35 per share after a few years. How will your gain or loss be treated when you file your taxes? O As a capital gain taxed at the long-term tax rate As a capital gain taxed at the current ordinary-income tax rate taxable income. It Depreciation expenses directly affect a company's taxable income. An increase in depreciation expense will lead to a will tax deducted from a company's earnings, thus leading to a operating cash flow. According to a tax law established in 1969, taxpayers must pay the of the Alternative Minimum Tax (AMT) or regular tax. To offset taxable income in a given year, ordinary corporate operating losses can be: O Carried back for 5 years and carried forward for 10 years O Carried forward indefinitely