Economic incidence of tax; prepayment of interest
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True and False
1. The person who pays a tax directly to the government bears the economic incidence of the tax.
2. A cash basis taxpayer must account for any prepayment of interest expense under the accrual method.
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1. The person who pays a tax directly to the government bears the economic incidence of the tax.
Not necessarily true. Example is that you buy a new shirt at the store and pay the sales tax as part of the total purchase ...
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