Test Bank — South-Western Federal Taxation 2026: Essentials of Taxation: Individuals and Business Entities, 29th Edition (Nellen, Cuccia, Persellin, Young, 2025) | All Chapters 1-18 Covered

TEST BANK
South-Western Federal Taxation 2026: Essentials of
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Taxation: Individuals and Business Entities
Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young
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29th Edition
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TEST BANK
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South-Western Federal Taxation 2026
Essentials of Taxation: Individuals and Business Entities • 29th Edition
By Nellen, Cuccia, Persellin, Young
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TABLE OF CONTENTS
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PART 1. THE WORLD OF TAXATION

Chapter 1 Introduction to Taxation 1-1

Chapter 2 Working with the Tax Law 2-1
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PART 2. STRUCTURE OF THE FEDERAL INCOME TAX

Chapter 3 Gross Income 3-1

Chapter 4 Business Deductions 4-1
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Chapter 5 Losses and Loss Limitations 5-1

PART 3. PROPERTY TRANSACTIONS
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Chapter 6 Property Transactions: Basis, Gain and Loss, Nontaxable Exchanges, and Tax-Free Transactions
6-1

Chapter 7 Property Transactions: Capital Gains and Losses, Section 1231, and Recapture Provisions
7-1

PART 4. TAXATION OF INDIVIDUALS
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Chapter 8 Individuals as Taxpayers 8-1

Chapter 9 Individuals: Income, Deductions, and Credits 9-1

Chapter 10 Individuals as Employees and Proprietors 10-1
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PART 5. BUSINESS ENTITIES

Chapter 11 Corporations: Organization, Capital Structure, and Operating Rules 11-1

Chapter 12 Corporations: Earnings & Profits and Distributions 12-1
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Chapter 13 Partnerships and Limited Liability Entities 13-1

Chapter 14 S Corporations 14-1

Chapter 15 Comparative Forms of Doing Business 15-1
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PART 6. ADDITIONAL TAX TOPICS

Chapter 16 Business Tax Credits and the Alternative Minimum Tax 16-1

Chapter 17 Multijurisdictional Taxation 17-1

Chapter 18 Taxes in the Financial Statements 18-1



1

, Name: Class: Date:

Ch01: Introduction to Taxation

True / False
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1. The Medicare component of the FICA tax (1.45% on wages) is progressive because the tax due increases as
wages increase.
a. True
b. False
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ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: EOTX.SWFT.2026.LO: 1 02 - LO: 1-02
IA
2. The Federal estate and gift taxes are examples of progressive rate taxes.
a. True
b. False
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ANSWER: True
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: EOTX.SWFT.2026.LO: 1 02 - LO: 1-02
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3. The Federal excise tax on gasoline has a proportional effect on all taxpayers (that is, neither progressive nor
regressive).
a. True
b. False
PR
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: EOTX.SWFT.2026.LO: 1 02 - LO: 1-02
OV
4. Currently, the Federal corporate income tax is less progressive than the individual income tax.
a. True
b. False

ANSWER: True
ED
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: EOTX.SWFT.2026.LO: 1 02 - LO: 1-02
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, Name: Class: Date:

Ch01: Introduction to Taxation

5. Mona inherits her mother’s personal residence, which she converts to a furnished rental house. These changes
should affect the amount of ad valorem property taxes levied on the properties.
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a. True
b. False

ANSWER: True
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POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: EOTX.SWFT.2026.LO: 1 03 - LO: 1-03

6. A fixture will be subject to the ad valorem tax on personalty rather than the ad valorem tax on realty.
a. True
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b. False

ANSWER: False
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POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: EOTX.SWFT.2026.LO: 1 03 - LO: 1-03

7. Even if property tax rates are not changed, the amount of ad valorem taxes imposed on realty may not remain
AP
the same.
a. True
b. False

ANSWER: True
PR
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: EOTX.SWFT.2026.LO: 1 03 - LO: 1-03

8. The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on
OV
business use personalty.
a. True
b. False

ANSWER: True
POINTS: 1
ED
DIFFICULTY: Easy
LEARNING OBJECTIVES: EOTX.SWFT.2026.LO: 1 03 - LO: 1-03
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