ACCT 553 Week 1 Homework Assignment

 

Chapter 1 (5 pts)

  1. Briefly discuss the purpose of the Sixteenth Amendment

Chapter 2 (5 pts)

  1. Explain the two ‘safe harbors’ available to an Individual taxpayer to avoid a penalty for underpayment of estimated tax.

Chapter 3 (5 pts)

  1. Explain the distinction between an ‘above the line’ deduction (i.e. FOR AGI) and a below the line deduction (i.e. FROM AGI). Which one is more valuable?

Chapter 13 (5 pts)

  1. What is an Installment Sale? Is it a form of income ‘deferral’ ? Whencan’tyou elect this form of reporting?