South- Western Federal
Taxation 2025:
ST
Comprehensive 48th Edition
UV
TEST BANK
IA
?_
AP
James C. Young
PR
OV
Comprehensive Test Bank for Instructors
and Students
ED
© James C. Young. All rights reserved. Reproduction or distribution without permission is
??
prohibited.
©MEDCONNOISSEUR
, Table of Contents
Test Bank for South-Western Federal Taxation 2025: Comprehensive (48th
Edition)
Authors: James C. Young, Mark Persellin, Annette Nellen, Andrew D.
Cuccia
ST
ISBN: 9780357988817
UV
Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law
Chapter 2: Working with the Tax Law
Chapter 3: Tax Formula and Tax Determination
Chapter 4: Gross Income: Concepts and Inclusions
Chapter 5: Gross Income: Exclusions
IA
Chapter 6: Deductions and Losses: In General
Chapter 7: Bad Debts
Chapter 8: Depreciation, Cost Recovery, Amortization, and Depletion
?_
Chapter 9: Deductions: Employee and Self-Employed-Related Expenses
Chapter 10: Deductions and Losses: Certain Itemized Deductions
Chapter 11: Investor Losses
Chapter 12: Tax Credits and Payments
AP
Chapter 13: Property Transactions: Determination of Gain or Loss, Basis
Considerations, and Nontaxable Exchanges
Chapter 14: Property Transactions: Capital Gains and Losses, §1231, and
Recapture Provisions
PR
Chapter 15: The Deduction for Qualified Business Income for Noncorporate
Taxpayers
Chapter 16: Accounting Periods and Methods
Chapter 17: Corporations: Introduction and Operating Rules
Chapter 18: Corporations: Organization and Capital Structure
OV
Chapter 19: Corporations: Distributions Not in Complete Liquidation
Chapter 20: Corporations: Distributions in Complete Liquidation and an
Overview of Reorganizations
Chapter 21: Partnerships: Formation, Operation, and Basis
Chapter 22: Partnerships: Distributions, Transfer of Interests, and Terminations
ED
Chapter 23: S Corporations
Chapter 24: Taxes in the Financial Statements
Chapter 25: Exempt Entities
Chapter 26: Multistate Corporate Taxation
??
Chapter 27: Taxation of International Transactions
Chapter 28: Tax Practice and Ethics
Chapter 29: The Federal Gift and Estate Taxes
Chapter 30: Income Taxation of Trusts and Estates
©MEDCONNOISSEUR
, Chapter a 01 a 2025 a - a Comprehensive
Indicate a whether a the a statement a is a true a or
a false.
a 1. aIf amore aIRS aaudits aare aproducing aa ahigher anumber aof ano a change aresults, athis aindicates aincreased
acompliance aon athe apart aof ataxpayers.
ST
True
False
a 2. aThe afirst aincome atax aon aindividuals a(after athe aratification aof athe aSixteenth aAmendment ato athe
UV
aConstitution) alevied atax arates afrom aa alow aof a1% ato aa ahigh aof a6%.
True
False
a 3. aStealth ataxes ahave athe aeffect aof agenerating aadditional ataxes afrom aall ataxpayers.
IA
True
False
a 4. aIf afraud ais ainvolved, athere ais ano atime alimit aon athe aassessment aof aa adeficiency aby athe aIRS.
True
?_
False
a 5. aUnder astate aamnesty aprograms, aall adelinquent aand aunpaid aincome ataxes aare aforgiven.
True
AP
False
a 6. a The a Federal a estate a and a gift a taxes a are a examples a of a progressive a rate a taxes.
True
False
PR
a 7. aThe aIRS ais arequired ato aredetermine athe ainterest arate aon aunderpayments aand aoverpayments aonce aa ayear.
True
False
OV
a 8. aThe aFederal aincome atax aon aindividuals agenerates amore arevenue athan athe aFederal aincome atax aon
acorporations.
True
False
a 9. aTo amitigate athe aeffect aof athe aannual aaccounting aperiod aconcept, athe atax alaw apermits athe
ED
acarryforward aof aexcess acharitable acontributions aof aa aparticular ayear ato aother ayears.
True
False
a 10. aUnlike aFICA, aFUTA arequires athat aemployers acomply awith astate aas awell aas aFederal arules.
True
??
False
Page a1
, Name: Class: Date:
Chapter a 01 a 2025 a -
a Comprehensive
a 11. aIf aa aspecial aagent abecomes ainvolved ain athe aaudit aof aa areturn, athis aindicates athat athe aIRS asuspects
athat afraud ais ainvolved.
ST
True
False
a 12. aTwo apersons awho alive ain athe asame astate abut ain adifferent acounties amay anot abe asubject ato athe asame
UV
ageneral asales atax arate.
True
False
a 13. aUnder athe ausual astate ainheritance atax, atwo aheirs, aa acousin aand aa ason aof athe adeceased, awould anot
abe ataxed aat athe asame arate.
IA
True
False
a 14. aVarious atax aprovisions aencourage athe acreation aof acertain atypes aof aretirement aplans. aSuch
?_
aprovisions acan abe ajustified aon aboth aeconomic aand asocial agrounds.
True
False
AP
a 15. aA aparent aemploys aher atwin adaughters, aage a17, ain aher asole aproprietorship. aThe adaughters aare anot
asubject ato aFICA acoverage.
True
False
a 16. aFor aomissions afrom agross aincome ain aexcess aof a25% aof athat areported, athere ais ano astatute aof
PR
alimitations aon aadditional aincome atax aassessments aby athe aIRS.
True
False
a 17. aNot a all aof athe a states a that a impose aa a general asales atax a also ahave a a ause atax.
OV
True
False
a 18. aStates aimpose aeither aa astate aincome atax aor aa ageneral asales atax, abut anot aboth atypes aof ataxes.
True
ED
False
a 19. aThe aamount aof athe astate aexcise ataxes aon agasoline avaries afrom astate ato astate.
True
False
??
a 20. aUpon aaudit aby athe aIRS, aFaith ais aassessed aa adeficiency aof a$40,000 aof awhich a$25,000 ais aattributable ato
anegligence.
The a20% anegligence apenalty awill aapply ato a$25,000.
True
False
Page a2
Taxation 2025:
ST
Comprehensive 48th Edition
UV
TEST BANK
IA
?_
AP
James C. Young
PR
OV
Comprehensive Test Bank for Instructors
and Students
ED
© James C. Young. All rights reserved. Reproduction or distribution without permission is
??
prohibited.
©MEDCONNOISSEUR
, Table of Contents
Test Bank for South-Western Federal Taxation 2025: Comprehensive (48th
Edition)
Authors: James C. Young, Mark Persellin, Annette Nellen, Andrew D.
Cuccia
ST
ISBN: 9780357988817
UV
Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law
Chapter 2: Working with the Tax Law
Chapter 3: Tax Formula and Tax Determination
Chapter 4: Gross Income: Concepts and Inclusions
Chapter 5: Gross Income: Exclusions
IA
Chapter 6: Deductions and Losses: In General
Chapter 7: Bad Debts
Chapter 8: Depreciation, Cost Recovery, Amortization, and Depletion
?_
Chapter 9: Deductions: Employee and Self-Employed-Related Expenses
Chapter 10: Deductions and Losses: Certain Itemized Deductions
Chapter 11: Investor Losses
Chapter 12: Tax Credits and Payments
AP
Chapter 13: Property Transactions: Determination of Gain or Loss, Basis
Considerations, and Nontaxable Exchanges
Chapter 14: Property Transactions: Capital Gains and Losses, §1231, and
Recapture Provisions
PR
Chapter 15: The Deduction for Qualified Business Income for Noncorporate
Taxpayers
Chapter 16: Accounting Periods and Methods
Chapter 17: Corporations: Introduction and Operating Rules
Chapter 18: Corporations: Organization and Capital Structure
OV
Chapter 19: Corporations: Distributions Not in Complete Liquidation
Chapter 20: Corporations: Distributions in Complete Liquidation and an
Overview of Reorganizations
Chapter 21: Partnerships: Formation, Operation, and Basis
Chapter 22: Partnerships: Distributions, Transfer of Interests, and Terminations
ED
Chapter 23: S Corporations
Chapter 24: Taxes in the Financial Statements
Chapter 25: Exempt Entities
Chapter 26: Multistate Corporate Taxation
??
Chapter 27: Taxation of International Transactions
Chapter 28: Tax Practice and Ethics
Chapter 29: The Federal Gift and Estate Taxes
Chapter 30: Income Taxation of Trusts and Estates
©MEDCONNOISSEUR
, Chapter a 01 a 2025 a - a Comprehensive
Indicate a whether a the a statement a is a true a or
a false.
a 1. aIf amore aIRS aaudits aare aproducing aa ahigher anumber aof ano a change aresults, athis aindicates aincreased
acompliance aon athe apart aof ataxpayers.
ST
True
False
a 2. aThe afirst aincome atax aon aindividuals a(after athe aratification aof athe aSixteenth aAmendment ato athe
UV
aConstitution) alevied atax arates afrom aa alow aof a1% ato aa ahigh aof a6%.
True
False
a 3. aStealth ataxes ahave athe aeffect aof agenerating aadditional ataxes afrom aall ataxpayers.
IA
True
False
a 4. aIf afraud ais ainvolved, athere ais ano atime alimit aon athe aassessment aof aa adeficiency aby athe aIRS.
True
?_
False
a 5. aUnder astate aamnesty aprograms, aall adelinquent aand aunpaid aincome ataxes aare aforgiven.
True
AP
False
a 6. a The a Federal a estate a and a gift a taxes a are a examples a of a progressive a rate a taxes.
True
False
PR
a 7. aThe aIRS ais arequired ato aredetermine athe ainterest arate aon aunderpayments aand aoverpayments aonce aa ayear.
True
False
OV
a 8. aThe aFederal aincome atax aon aindividuals agenerates amore arevenue athan athe aFederal aincome atax aon
acorporations.
True
False
a 9. aTo amitigate athe aeffect aof athe aannual aaccounting aperiod aconcept, athe atax alaw apermits athe
ED
acarryforward aof aexcess acharitable acontributions aof aa aparticular ayear ato aother ayears.
True
False
a 10. aUnlike aFICA, aFUTA arequires athat aemployers acomply awith astate aas awell aas aFederal arules.
True
??
False
Page a1
, Name: Class: Date:
Chapter a 01 a 2025 a -
a Comprehensive
a 11. aIf aa aspecial aagent abecomes ainvolved ain athe aaudit aof aa areturn, athis aindicates athat athe aIRS asuspects
athat afraud ais ainvolved.
ST
True
False
a 12. aTwo apersons awho alive ain athe asame astate abut ain adifferent acounties amay anot abe asubject ato athe asame
UV
ageneral asales atax arate.
True
False
a 13. aUnder athe ausual astate ainheritance atax, atwo aheirs, aa acousin aand aa ason aof athe adeceased, awould anot
abe ataxed aat athe asame arate.
IA
True
False
a 14. aVarious atax aprovisions aencourage athe acreation aof acertain atypes aof aretirement aplans. aSuch
?_
aprovisions acan abe ajustified aon aboth aeconomic aand asocial agrounds.
True
False
AP
a 15. aA aparent aemploys aher atwin adaughters, aage a17, ain aher asole aproprietorship. aThe adaughters aare anot
asubject ato aFICA acoverage.
True
False
a 16. aFor aomissions afrom agross aincome ain aexcess aof a25% aof athat areported, athere ais ano astatute aof
PR
alimitations aon aadditional aincome atax aassessments aby athe aIRS.
True
False
a 17. aNot a all aof athe a states a that a impose aa a general asales atax a also ahave a a ause atax.
OV
True
False
a 18. aStates aimpose aeither aa astate aincome atax aor aa ageneral asales atax, abut anot aboth atypes aof ataxes.
True
ED
False
a 19. aThe aamount aof athe astate aexcise ataxes aon agasoline avaries afrom astate ato astate.
True
False
??
a 20. aUpon aaudit aby athe aIRS, aFaith ais aassessed aa adeficiency aof a$40,000 aof awhich a$25,000 ais aattributable ato
anegligence.
The a20% anegligence apenalty awill aapply ato a$25,000.
True
False
Page a2
