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Bloom’s: Analyze AACSB: Reflective Thinking AICPA: BB Critical Thinking 9) The present value concept becomes more important as interest rates increase.Answer: TRUE Difficulty: 2 Medium Topic: Timing Strategies Learning Objective: 03-03 Apply the concept of present value to tax planning.Bloom’s: Analyze AACSB: Analytical Thinking AICPA: BB Critical Thinking 11) When considering cash inflows, higher present values are preferred.Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-03 Apply the concept of present value to tax planning.Bloom’s: Analyze AACSB: Reflective Thinking AICPA: FN Decision Making 18) The timing strategy becomes more attractive if a taxpayer is able to accelerate deductions by two or more years (versus one year).
Answer: FALSE Explanation: Future Value = Present Value × (1 r)n Difficulty: 2 Medium Topic: Timing Strategies Learning Objective: 03-03 Apply the concept of present value to tax planning.Answer: TRUE Difficulty: 1 Easy Topic: Timing Strategies Learning Objective: 03-02 Apply the timing strategy and describe its applications and limitations.Bloom’s: Analyze AACSB: Reflective Thinking AICPA: FN Decision Making 6) The concept of present value is an important part of the timing strategy. .00 Difficulty: 2 Medium Topic: Timing Strategies Learning Objective: 03-03 Apply the concept of present value to tax planning.var theme Actions Banner = null; j Query(document).ready(function() { theme Actions Banner = j Query("#theme-actions-banner.hfg-nav"); var headbanner Node = j Query("#headbanner"); var is Headbanner Visible = headbanner Node.is(":visible"); var trial Headbanner Node = j Query("#trial-headbanner"); var is Trial Headbanner Visible = trial Headbanner Node.is(":visible"); var trial Headbanner Height = is Trial Headbanner Visible ?trial Headbanner Node.outer Height() : 0; var headbanner Height = is Headbanner Visible ?
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Bloom’s: Analyze AACSB: Reflective Thinking AICPA: BB Critical Thinking 13) Tax savings generated from deductions are considered cash inflows.
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