[LO 1.1] What are consumption taxes?

[LO 1.4] Differentiate horizontal from vertical equity.

[LO 1.4] When was the constitutional amendment permitting an income tax ratified?

[LO 1.4] What is a sin tax?

[LO 1.5] What are three objectives of income taxation?

[LO 1.5] What are the three taxable persons that pay all of the income taxes?

[LO 1.5] What is the difference between gross revenue and gross income for a business?

[LO 1.5] What are at least three unique features of the individual tax model when compared to the corporate tax model? What are three similarities between these models?

[LO 1.5] What is the purpose of adjusted gross income for an individual?

[LO 1.5] What are the four filing statuses for which there are standard deductions?

[LO 1.5] Differentiate the personal exemption from the dependency exemption.

[LO 1.5] How is gain or loss on the disposition of business or investment property determined?

[LO 1.5] What is the difference between a deduction from income and a credit against a tax liability? Illustrate your answer.

[LO 1.6] What are three characteristics of a sole proprietorship? Are these characteristics the same as or different from those of a partnership? What are three characteristics of a limited liability company that differ from those of a partnership?

[LO 1.6] Compare a C corporation to an S corporation.