Final answer:
To determine if an item is taxable or nontaxable, we need to understand the different tax categories: income taxes, property taxes, sales taxes, and intergovernmental revenues.
Step-by-step explanation:
To determine if an item is taxable or nontaxable, we need to understand the different tax categories. Taxes can fall into four primary categories: income taxes, property taxes, sales taxes, and intergovernmental revenues.
Income taxes are imposed on the income earned by a person or firm. Property taxes are imposed on assets. Sales taxes are imposed on the value of goods sold. And intergovernmental revenues refer to the money transferred between different levels of government.
Based on this information, we can sort the items by their respective tax categories.