Income must be taxed to the entity that earns it from sale of goods or performance of services:

A$.$ Income shifting.

B$.$ Deduction shifting.

C$.$ Opportunity costs.

D$.$ Assignment of income doctrine.

Shifting tax costs to later period may involve postponing a cash inflow:

A$.$ Income shifting.

B$.$ Deduction shifting.

C$.$ Opportunity costs.

D$.$ Assignment of income doctrine

Reduced before$-$tax rate of return on a tax$-$favored investment:

:$.$

A$.$ Implicit tax.

B$.$ Explicit tax.

C$.$ All of the above.

D$.$ None of the above.

A tax specifically collected by a government:

A$.$ Implicit tax.

B$.$ Explicit tax.

C$.$ All of the above.

D$.$ None of the above.

Question Three: A taxpayer can invest $$10,000$ in a common stock that pays no dividends but appreciates at a rate of $15\%.$ The taxpayer's tax rate is $45\%.$ He plans to sell the stock after $30$ years.

A$.$ Find the after$-$tax accumulation and the annualized after$-$tax rate of return for this investment.

B$.$ What would have been the annualized after$-$tax rate of return on the stock if there were a special tax rate of $35\%$ on capital gains?