Answered: an item is excluded from income…

an item is excluded from income taxation, it would follow that the same is likewise exempt from other internal revenue taxes.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If an item is excluded from income taxation, it would follow that the same is
likewise exempt from other internal revenue taxes.

TRUE OR FALSE?

Rules by which an authority (usually a government) imposes a financial obligation on individuals or organizations within its domain. Property or transactions can be taxed. While taxes are primarily intended to fund the operation of a government, many tax laws are created to encourage or discourage certain behaviors by citizens or companies.

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