Writing of Ford's quality control problems, Tom Murphy of Ward's Auto World magazine mentions internal data
suggesting suppliers were more culpable than the auto maker as recalls and warranty claims seemed to be
....... out of control.
Fair value ....... argue that measuring financial assets as close as possible to their true underlying economic
values removes these perverse incentives.
For example, during the U.S. savings and loan crisis in the 1980s, many institutions ....... assets with market
values above book and continued to hold assets with book values above market.
When accounting values for assets ....... from their underlying market values, some managements take
uneconomic actions to protect accounting performance measures.
According to NAREIT (Yungmann and Taube, 2001), property insurance coverage should be based on fair
value, i.e., valuing assets at their current market values — actual, if available, or ......., if not.
As early as the 17th century, Sir William Petty, one of the ....... of modern economics, argued that a tax on the
production and sale of commodities would eventually be shifted by producers to consumers, who would pay it
in the form of higher prices.
While the top corporate tax rate was cut, deductions for capital expenditures were severely ......., and as a
result the effective tax rate for many corporations rose.
The Tax Reform Act of 1986 was designed to increase the share of federal revenues collected via the
corporate income tax and to decrease the share from the ....... income tax.
A good reason that state and local corporate income taxes remain low is that corporations could easily .......
out of states that imposed unusually high taxes.
The federal tax is levied at three different rates on different ....... of income: 15 percent on taxable income
under $50,000; 25 percent on income between $50,000 and $75,000; and 34 percent on income above that.
The federal corporate income tax applies only to some businesses — those chartered as corporations — and
not to partnerships or ....... proprietorships.
