Test Bank for South-Western Federal Taxation 2025: Comprehensive, 48th Edition by (Young/Persellin) ISBN: 9780357988817, All 30 Chapters Covered, Verified Latest Edition

TEST BANK ’ ’




South-Western Federal Taxation 2025:
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Corporations, Partnerships, Estates and Trusts 47th Edition
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by Nellen & Young Chapters 1 - 20
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Page’1

,TABLE OF CONTENTS
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Part’I:’INTRODUCTION’TO’TAXATION’AND’BUSINESS’ENTITIES.
1.’Understanding’and’Working’with’the’Federal’Tax’Law.
2.’The’Deduction’for’Qualified’Business’Income’for’Noncorporate’Taxpayers.
Part’II:’CORPORATIONS.
3.’Corporations:’Introduction’and’Operating’Rules.
4.’Corporations:’Organization’and’Capital’Structure.
5.’Corporations:’Earnings’&’Profits’and’Dividend’Distributions.
6.’Corporations:’Redemptions’and’Liquidations.
7.’Corporations:’Reorganizations.
8.’Consolidated’Tax’Returns.
9.’Taxation’of’International’Transactions.
Part’III:’FLOW-THROUGH’ENTITIES.
10.’Partnerships:’Formation,’Operation,’and’Basis.
11.’Partnerships:’Distributions,’Transfer’of’Interests,’and’Terminations.
12.’S’Corporations.
Part’IV:’ADVANCED’TAX’PRACTICE’CONSIDERATIONS.
13.’Comparative’Forms’of’Doing’Business.
14.’Taxes’in’the’Financial’Statements.
15.’Exempt’Entities.
16.’Multistate’Corporate’Taxation.
17.’Tax’Practice’and’Ethics.
Part’V:’FAMILY’TAX’PLANNING.
18.’The’Federal’Gift’and’Estate’Taxes.
19.’Family’Tax’Planning.
20.’Income’Taxation’of’Trusts’and’Estates.


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,Chapter’01:’Understanding’and’Working’with’the’Federal’Tax’Law
True’/’False

1. Many’states’have’balanced’budgets’because’laws’or’constitutional’amendments’preclude’deficit’spending.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION’TYPE: True’/’False
HAS’VARIABLES: False
LEARNING’OBJECTIVES:’ CPET.SWFT.2025.LO:’1’ 01’-’LO:’1-01
NATIONAL’STANDARDS:’ United’States’-’BUSPROG:’Comprehension’-’BUSPROG:’Comprehension
STATE’STANDARDS: United’States’-’TX’-’AICPA:’FN-Measurement
United’States’-’AK’-’AICPA:’FN-Research
KEYWORDS: Bloom's:’Remember
OTHER: Time:’2’min.
DATE’CREATED: 1/31/2024’10:55’AM
DATE’MODIFIED: 3/1/2024’1:43’PM

2. The’U.S.’Federal’government’has’a’provision’in’the’Constitution’that’precludes’deficit’spending.
a. True
b. False
ANSWER: False
RATIONALE: There’is’no’such’provision,’and’the’national’debt’continues’to’grow.
POINTS: 1
DIFFICULTY: Easy
QUESTION’TYPE: True’/’False
HAS’VARIABLES: False
LEARNING’OBJECTIVES:’ CPET.SWFT.2025.LO:’1’ 01’-’LO:’1-01
NATIONAL’STANDARDS:’ United’States’-’BUSPROG:’Comprehension’-’BUSPROG:’Comprehension
STATE’STANDARDS: United’States’-’AK’-’AICPA:’FN-Measurement
KEYWORDS: Bloom's:’Remember
OTHER: Time:’2’min.
DATE’CREATED: 1/31/2024’10:55’AM
DATE’MODIFIED: 3/1/2024’1:43’PM

3. Revenue-neutral’tax’laws’reduce’deficits.
a. True
b. False
ANSWER: False
RATIONALE: They’do’not’reduce’deficits’but’do’not’aggravate’the’problem.
POINTS: 1
DIFFICULTY: Easy
QUESTION’TYPE: True’/’False



Page’3

, Chapter’01:’Understanding’and’Working’with’the’Federal’Tax’Law
HAS’VARIABLES: False
LEARNING’OBJECTIVES:’ CPET.SWFT.2025.LO:’1-01’-’LO:’1-01
NATIONAL’STANDARDS:’ United’States’-’BUSPROG:’Comprehension’-’BUSPROG:’Comprehension
STATE’STANDARDS: United’States’-’AK’-’AICPA:’FN-Measurement
KEYWORDS: Bloom's:’Remember
OTHER: Time:’2’min.
DATE’CREATED: 1/31/2024’10:55’AM
DATE’MODIFIED: 3/1/2024’1:43’PM

4. Longer’class’lives’for’depreciable’property’and’the’required’use’of’the’straight-
line’method’of’depreciation’would’likely’dampen’the’tax’incentive’for’purchasing’capital’assets.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION’TYPE: True’/’False
HAS’VARIABLES: False
LEARNING’OBJECTIVES:’ CPET.SWFT.2025.LO:’1’ 02’-’LO:’1-02
NATIONAL’STANDARDS:’ United’States’-’BUSPROG:’Comprehension’-’BUSPROG:’Comprehension
STATE’STANDARDS: United’States’-’TX’-’AICPA:’FN-Reporting
United’States’-’AK’-’AICPA:’FN-Research
KEYWORDS: Bloom's:’Remember
OTHER: Time:’2’min.
DATE’CREATED: 1/31/2024’10:55’AM
DATE’MODIFIED: 3/1/2024’1:43’PM

5. The’Internal’Revenue’Code’is’a’compilation’of’Federal’tax’legislation’that’appears’in’Title’26’of’the’United’States’Code.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION’TYPE: True’/’False
HAS’VARIABLES: False
LEARNING’OBJECTIVES:’ CPET.SWFT.2025.LO:’1’ 02’-’LO:’1-02
NATIONAL’STANDARDS:’ United’States’-’BUSPROG:’Comprehension’-’BUSPROG:’Comprehension
STATE’STANDARDS: United’States’-’AK’-’AICPA:’FN-Research
United’States’-’TX’-’FN-Reporting
KEYWORDS: Bloom's:’Remember
OTHER: Time:’2’min.
DATE’CREATED: 1/31/2024’10:55’AM
DATE’MODIFIED: 3/1/2024’1:43’PM


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