PLEASE ANSWER ALL 4 QUESTIONS POSTED

QUESTION 1

1. Which of the following is an example of tax evasion?

   a. Beth invests money in tax exempt municipal bonds instead of corporate bonds.

   b. Bryan elects to contribute to his employer-sponsored retirement plan through payroll deduction.

   c. Frank, a very wealthy 87-year-old individual, gives bonds to each of his grandchildren so that the interest income on them would be taxed at a lower tax rate.

   d. Bertha won $500 cash in an amateur mud-wrestling contest but doesn't report it on her tax return.

   QUESTION 2

   The basic formula to arrive at the base for calculating federal income tax is:

   Income (broadly defined)

   Less: Exclusions (income that is not subject to tax)

   Equals Gross Income (income that is subject to tax)

   Less: Deductions

   Equals Taxable income

   	a.	This formula is correct.
   	b.	This formula is incorrect.

   QUESTION 6

   ________is the base used to calculate income tax.

   a. Taxable income

   b. Gross income

   c. Adjusted gross income

   d. Economic income

   QUESTION 7

   Which of the following taxes is paid only by the employer?

   		a. FICA
   		b. FUTA
   		c. Social Security tax
   		d. Medicare tax