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TABLE OF CONTENTS
Problems ..............................................................................................................................1
Bridge Discipline Problems ................................................................................................6
Research Problems.............................................................................................................7
PROBLEMS
1. (LO 1) Various answers are possible, including using the Key Terms at the end of each
chapter, referring to the Glossary (Appendix C), looking up the footnote resources to
the Internal Revenue Code in Appendix D, using chapter features (e.g., Global Tax
Issues, Ethics & Equity, Tax Planning, and Digging Deeper), examining the tax forms
used in the chapters, and completing additional end-of-chapter assignments. All of
these resources will help students engage more deeply with the materials and help
their understanding.
2. (LO 3, 5, 6) Some tax and nontax considerations James should investigate include the
following:
• State and local income taxes.
• State and local sales taxes.
• State and local property taxes.
• Employee implications of the move (Will James lose current employees? Is the
labor market better in the new location? Is cost of living lower or higher in new
location?).
• Logistics/transportation of products to customers (specifically document lower
costs).
• State infrastructure (better in new location?).
3. (LO 2) A tax is regressive if it represents a larger percentage of the income of a lowincome taxpayer relative to the income of a high-income taxpayer. Examples of
regressive taxes include sales and excise taxes. A tax is progressive if it represents a
larger percentage of the income of a high-income taxpayer relative to the income of a
low-income taxpayer. The Federal income tax is an example of a progressive tax.
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