Question One: make True or False for the following sentences: $-$

Savings Vehicle $1($Money Market Savings Account$)$ are tax deductible.

Savings Vehicle $2$ Deposits into a single$-$premium deferred annuity $($SPDA$)$ contract through an insurance company in the United States are not tax deductible.

Savings Vehicle $5$ the earnings on the investment are entirely tax not exempt.

In Savings Vehicle $6,$ the investment is tax deductible, and investment earnings are tax deferred.

In Savings Vehicle $4,$ deposits are tax deductible, the tax on the earnings is not deferred, and taxed at capital gains rates when the investment is unliquidated.

Question Two: Choose the best answer in the below:

Consists of legitimate means of reducing taxes:

A$.$ Tax evasion.

B$.$ Tax avoidance.

$($C$.)$ tax deductible.

D$.$ None of the above.

Consists of illegal means of reducing taxes:

A$.$ Tax evasion.

B$.$ Tax avoidance.

C$.$ tax deductible.

D$.$ None of the above.

Tax consequences of a transaction depend on the interaction of:

A$.$ Two variables.

B$.$ Three variables.

C$.$ Four variables.

D$.$ Five variables.

In which tax year does the transaction occur?

A$.$ Time period variable.

B$.$ Jurisdiction variable.

C$.$ Character variable.

D$.$ Entity variable.

Arranging transactions to transfer income from a high tax rate entity to a low tax rate entity:

A$.$ Income shifting.

B$.$ Deduction shifting.

C$.$ Opportunity costs.

D$.$ Assignment of income doctrine.

Arranging transactions to transfer deductions from a low tax rate entity to a high tax rate entity:

A$.$ Income shifting.

B$.$ Deduction shifting.

C$.$ Opportunity costs.

D$.$ Assignment of income doctrine.