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T has a tax base of $30,000 and pays a tax of $2,500 on the first $25,000 and $750 on the next $5,000. T has an average tax rate of:

	a.	10 percent.
	b.	15 percent.
	c.	20 percent.
	d.	10.83 percent.
	e.	None of the answers here are correct.

The tax rate to compute the Social Security taxis best considered:

	a.	None of the responses here are correct.
	b.	Proportional
	c.	Progressive
	d.	Neutral
	e.	Regressive

Which of the following is considered a miscellaneous itemized deduction?

	a.	Tax preparation fee.
	b.	Interest expenses attributable to a mortgage on the taxpayer's principal residence.
	c.	Property taxes assessed on the taxpayer's residence.
	d.	Moving expenses of an employee.
	e.	More than one of the answers provided here are miscellaneous itemized deductions.

A penalty is assessed against individuals for failure to make adequate estimated tax payments. Which of the following is NOT true of that penalty?

	a.	The penalty is not assessed if the total prepaymentswithholding, estimated tax payments, and othersare at least 90 percent of the total tax due for the year.
	b.	The penalty is assessed only with respect to income taxes owed and not self-employment taxes.
	c.	The penalty is not assessed if the tax due is less than $1,000.
	d.	The penalty is not assessed if the total prepaymentswithholding, estimated tax payments, and othersequal or exceed the prior years tax (unless AGI exceeded $150,000).

Foreign income earned by U.S. citizens is:

	a.	taxable, but the U.S. tax may be reduced by taking a credit for foreign taxes paid
	b.	taxable, but the U.S. tax may be reduced by taking a credit for foreign taxes paid AND is not affected by any applicable treaty.
	c.	nontaxable.
	d.	is not affected by any applicable treaty.

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