TEST BANK SOUTH-WESTERN FEDERAL TAXATION 2025:INDIVIDUAL INCOME
TAXES, 48TH EDITION BY YOUNG COMPLETE CHAPTERS 1 - 20
,TABLE OF CONTENTS
Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law
Chapter 2: Working with the Tax Law
Chapter 03: Tax Formula and Tax Determination Chapter
04: Gross Income: Concepts and Inclusions Chapter 05:
Gross Income: Exclusions
Chapter 06: Deductions and Losses: In General
Chapter 07: Deductions and Losses: Certain Business Expenses Chapter 08:
Depreciation, Cost Recovery, Amortization, and Depletion Chapter 09:
Deductions: Employee and Self-Employed-Related
Page 1
,Expense
Chapter 10: Deductions and Losses: Certain Itemized Deductions Chapter 11:
Investor Losses
Chapter 12: Alternative Minimum Tax
Chapter 13: Tax Credits and Payment Procedures
Chapter 14: Property Transactions: Determination of Gain or Loss and Chapter 15:
Property Transactions: Nontaxable Exchanges
Chapter 16: Property Transactions: Capital Gains and Losses Chapter 17:
Property Transactions: 1231 and Recapture Provisions Chapter 18:
Accounting Periods and Methods
Chapter 19: Deferred Compensation Chapter 20:
Corporations and Partnerships
Page 2
, Chapter 01 2025 Individuals
Answers at the end of each
chapter
Indicate whether the statement is true or
false.
1. Sales made over the internet are not exempt from the application of a general sales (or use) tax.
a. True
b. False
2. Upon audit by the IRS, Faith is assessed a deficiency of $40,000 of which $25,000 is attributable
to negligence.
The 20% negligence penalty will apply to $25,000.
a. True
b. False
3. Ultimately, most taxes are paid by individuals.
a. True
b. False
4. Even if property tax rates are not changed, the amount of ad valorem taxes imposed on realty may
not remainthe same.
a. True
b. False
5. The principal objective of the FUTA tax is to provide some measure of retirement security.
a. True
b. False
6. If more IRS audits are producing a higher number of no change results, this indicates increased
compliance onthe part of taxpayers.
a. True
b. False
7. A safe and easy way for a taxpayer to avoid local and state sales taxes is to make the purchase in
a state thatlevies no such taxes.
a. True
b. False
8. A calendar year taxpayer files his 2023 Federal income tax return on March 4, 2024. The return
Page 3
TAXES, 48TH EDITION BY YOUNG COMPLETE CHAPTERS 1 - 20
,TABLE OF CONTENTS
Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law
Chapter 2: Working with the Tax Law
Chapter 03: Tax Formula and Tax Determination Chapter
04: Gross Income: Concepts and Inclusions Chapter 05:
Gross Income: Exclusions
Chapter 06: Deductions and Losses: In General
Chapter 07: Deductions and Losses: Certain Business Expenses Chapter 08:
Depreciation, Cost Recovery, Amortization, and Depletion Chapter 09:
Deductions: Employee and Self-Employed-Related
Page 1
,Expense
Chapter 10: Deductions and Losses: Certain Itemized Deductions Chapter 11:
Investor Losses
Chapter 12: Alternative Minimum Tax
Chapter 13: Tax Credits and Payment Procedures
Chapter 14: Property Transactions: Determination of Gain or Loss and Chapter 15:
Property Transactions: Nontaxable Exchanges
Chapter 16: Property Transactions: Capital Gains and Losses Chapter 17:
Property Transactions: 1231 and Recapture Provisions Chapter 18:
Accounting Periods and Methods
Chapter 19: Deferred Compensation Chapter 20:
Corporations and Partnerships
Page 2
, Chapter 01 2025 Individuals
Answers at the end of each
chapter
Indicate whether the statement is true or
false.
1. Sales made over the internet are not exempt from the application of a general sales (or use) tax.
a. True
b. False
2. Upon audit by the IRS, Faith is assessed a deficiency of $40,000 of which $25,000 is attributable
to negligence.
The 20% negligence penalty will apply to $25,000.
a. True
b. False
3. Ultimately, most taxes are paid by individuals.
a. True
b. False
4. Even if property tax rates are not changed, the amount of ad valorem taxes imposed on realty may
not remainthe same.
a. True
b. False
5. The principal objective of the FUTA tax is to provide some measure of retirement security.
a. True
b. False
6. If more IRS audits are producing a higher number of no change results, this indicates increased
compliance onthe part of taxpayers.
a. True
b. False
7. A safe and easy way for a taxpayer to avoid local and state sales taxes is to make the purchase in
a state thatlevies no such taxes.
a. True
b. False
8. A calendar year taxpayer files his 2023 Federal income tax return on March 4, 2024. The return
Page 3
