Question

The “tax gap” is the difference between the amount of tax the government actually collects and the amount they could have collected if all of the tax rules had been complied with.

Group of answer choices

True

False

Answer #1

Answer is true

Tax gap is the gap which arises due to amount of reported income and taxes paid on it. If all of the income was reported the govenment would have collected a different tax and actual tax collected depends on the reported income. Hence the difference between the amount of tax that government actually collects and the amount they could have collected if all of the tax rules had been complied with is tax gap. Hence tax gaps is there as long as tax rules are not fully compled with.

If there is a difference between the salvage and book value of
an asset, there will be a tax implication to the sale.
Group of answer choices
True
False

If a company collects an amount from a customer whose account
had previously been written off, it should reinstate the account
before recording the collection.
Select one:
True
False

Suppose that the U.S. government decides to charge wine
producers a tax. Before the tax, 30,000 bottles of wine were sold
every week at a price of $7 per bottle. After the tax, 25,000
bottles of wine are sold every week; consumers pay $9 per bottle,
and producers receive $6 per bottle (after paying the tax). The
amount of the tax on a bottle of wine is $_____ per bottle. Of this
amount, the burden that falls on consumers is...

Suppose that the U.S. government decides to charge wine
producers a tax. Before the tax, 10 million bottles of wine were
sold every month at a price of $4 per bottle. After the tax, 3
million bottles of wine are sold every month; consumers pay $7 per
bottle, and producers receive $2 per bottle (after paying the
tax).
The amount of the tax on a bottle of wine is -----per bottle. Of
this amount, the burden that falls on consumers...

The difference between
the customer's willingness to pay for a product and the target
price is the:
Group of answer choices
Value Communications Gap
Price Structure Gap
Price Execution Gap
Total surplus

5. Calculating tax incidence
Suppose that the U.S. government decides to charge wine
producers a tax. Before the tax, 15,000 bottles of wine were sold
every week at a price of $7 per bottle. After the tax, 10,000
bottles of wine are sold every week; consumers pay $9 per bottle,
and producers receive $6 per bottle (after paying the tax). The
amount of the tax on a bottle of wine is $ ? per bottle. Of this
amount, the burden...

"There is no difference in the weight between rats fed low-fiber
diets and rats fed high fiber diets," is an example of a(n):
Group of answer choices
null hypothesis
alternative hypothesis
directional hypothesis
nondirectional hypothesis
Which of the following is an example of a nondirectional
research hypothesis?
Group of answer choices
There is a positive relationship between a high-fat diet and
weight gain.
There is a negative relationship between a high-fat diet and
weight gain.
There is a relationship between...

2.Calculating tax incidence
Suppose that the U.S. government decides to charge beer
producers a tax. Before the tax, 30 million cases of beer were sold
every month at a price of $6 per case. After the tax, 24 million
cases of beer are sold every month; consumers pay $7 per case, and
producers receive $3 per case (after paying the tax).
The amount of the tax on a case of beer is __ per case. Of this
amount, the burden...

5. Calculating tax incidence Suppose that the U.S. government
decides to charge wine producers a tax. Before the tax, 40 billion
bottles of wine were sold every year at a price of $5 per bottle.
After the tax, 34 billion bottles of wine are sold every year;
consumers pay $6 per bottle, and producers receive $2 per bottle
(after paying the tax). The amount of the tax on a bottle of wine
is $ per bottle. Of this amount, the...

Suppose that the U.S. government decides to charge beer
consumers a tax. Before the tax, 25,000 cases of beer were sold
every week at a price of $4 per case. After the tax, 19,000 cases
of beer are sold every week; consumers pay $5 per case (including
the tax), and producers receive $1 per case. The amount of the tax
on a case of beer is $_______ per case. Of this amount, the burden
that falls on consumers is $____...

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