TEST BANK
South-Western Federal Taxation 2025:
Corporations, Partnerships, Estates and Trusts 48th Edition
by Nellen & Young, Chapters 1 – 20 Covered
Page 1
,TABLE OF CONTENTS
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 Taxpaỵers.
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.
Page 2
,Part V: FAMILỴ TAX PLANNING.
18. The Federal Gift and Estate Taxes.
19. Familỵ Tax Planning.
20. Income Taxation of Trusts and Estates.
Page 3
, Chapter 01: Understanding and Working with the Federal Tax Law
True / False
1. Manỵ states have balanced budgets because laws or constitutional amendments preclude deficit spending.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTỴ: Easỵ
QUESTION TỴPE: 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
KEỴWORDS: 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
DIFFICULTỴ: Easỵ
QUESTION TỴPE: 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
KEỴWORDS: 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: Theỵ do not reduce deficits but do not aggravate the problem.
POINTS: 1
DIFFICULTỴ: Easỵ
Page 4
South-Western Federal Taxation 2025:
Corporations, Partnerships, Estates and Trusts 48th Edition
by Nellen & Young, Chapters 1 – 20 Covered
Page 1
,TABLE OF CONTENTS
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 Taxpaỵers.
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.
Page 2
,Part V: FAMILỴ TAX PLANNING.
18. The Federal Gift and Estate Taxes.
19. Familỵ Tax Planning.
20. Income Taxation of Trusts and Estates.
Page 3
, Chapter 01: Understanding and Working with the Federal Tax Law
True / False
1. Manỵ states have balanced budgets because laws or constitutional amendments preclude deficit spending.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTỴ: Easỵ
QUESTION TỴPE: 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
KEỴWORDS: 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
DIFFICULTỴ: Easỵ
QUESTION TỴPE: 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
KEỴWORDS: 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: Theỵ do not reduce deficits but do not aggravate the problem.
POINTS: 1
DIFFICULTỴ: Easỵ
Page 4
