,TESTBANK FOR South-Western Federal Taxation
2025 Corporations, Partnerships, Estates and
Trusts 48th Edition by Annette Nellen
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,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
HAS VARIABLES: False
Copyright Cengage Learning. Powered by Cognero. Page 1
,Chapter 01: Understanding and Working with the Federal Tax Law
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
6. The favorable treatment of research and development expenses (via amortization deductions and tax
credits) is one means of controlling the economy.
a. True
Copyright Cengage Learning. Powered by Cognero. Page 2
,Chapter 01: Understanding and Working with the Federal Tax Law
b. False
ANSWER: False
RATIONALE: This favorable treatment encourages certain activities (e.g., fostering technological prog
control the economy.
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-Measurement
KEYWORDS: Bloom's: Understand
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
7. The encouragement of private-sector pension plans can be justified under the encouragement of certain
industries.
a. True
b. False
ANSWER: False
RATIONALE: Justified under social considerations and encouragement of certain activities
(e.g., savings).
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-Measurement
United States - AK - AICPA: FN-Reporting
KEYWORDS: Bloom's: Understand
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
8. One Internal Revenue Code section enables shareholders in a small business corporation to obtain an
ordinary deduction for any loss recognized on a stock investment.
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
Copyright Cengage Learning. Powered by Cognero. Page 3
,Chapter 01: Understanding and Working with the Federal Tax Law
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: United States - TX - AICPA: FN-Measurement
United States - AK - AICPA: 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
9. One of the justifications for the enactment of the tax law governing corporate reorganizations was the
economic benefit it would provide businesses (including making them more efficient).
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-Reporting
KEYWORDS: Bloom's: Understand
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
10. Although a corporation is subject to a Federal income tax, a partnership is not.
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-Reporting
KEYWORDS: Bloom's: Understand
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
11. The Federal income tax law allows a taxpayer to claim a deduction for state and local income taxes
but limits all state taxes to a maximum of $10,000.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 4
,Chapter 01: Understanding and Working with the Federal Tax Law
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-Reporting
KEYWORDS: Bloom's: Understand
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
12. Alabama and South Carolina are community property states.
a. True
b. False
ANSWER: False
RATIONALE: They are common law states.
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-Reporting
KEYWORDS: Bloom's: Understand
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
13. A tax bill cannot originate in the Senate Finance Committee.
a. True
b. False
ANSWER: False
RATIONALE: Tax bills typically originate in the House Ways and Means Committee, but
the Senate Finance Committee may attach a tax bill as a rider to other
legislative proposals as was the case with the American Taxpayer Relief Act
of 2012.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA: FN-Reporting
United States - TX - AICPA: FN-Research
KEYWORDS: Bloom's: Understand
Copyright Cengage Learning. Powered by Cognero. Page 5
,Chapter 01: Understanding and Working with the Federal Tax Law
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
14. Taxpayers may read Committee Reports to determine the intent of Congress.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: 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
15. These Internal Revenue Code citations are incorrect: § 212(1) and § 1221(1).
a. True
b. False
ANSWER: False
RATIONALE: These sections are correct (and a part of the Internal Revenue Code).
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: 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
16. Internal Revenue Code § 6 involves gross income and § 7 outlines itemized deductions.
a. True
b. False
ANSWER: False
RATIONALE: These sections do not appear in the Internal Revenue Code.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
Copyright Cengage Learning. Powered by Cognero. Page 6
,Chapter 01: Understanding and Working with the Federal Tax Law
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: 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
17. Subchapter P refers to the subchapter in the Internal Revenue Code that deals with partners and
partnerships.
a. True
b. False
ANSWER: False
RATIONALE: Subchapter K (not Subchapter P) in the Internal Revenue Code deals with
partners and partnerships.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: 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
18. Regulations are arranged in a different sequence than the Internal Revenue Code.
a. True
b. False
ANSWER: False
RATIONALE: Regulations are arranged in the same sequence as the Internal Revenue Code.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: 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
19. Proposed Regulations have the force and effect of law.
Copyright Cengage Learning. Powered by Cognero. Page 7
, Chapter 01: Understanding and Working with the Federal Tax Law
a. True
b. False
ANSWER: False
RATIONALE: They carry little, if any, weight.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: 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
20. Temporary Regulations have the same authoritative value as Final Regulations for four years.
a. True
b. False
ANSWER: False
RATIONALE: Temporary Regulations have the same authoritative value for three (not four)
years.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: 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
21. Proposed Regulations are published in the Federal Register.
a. True
b. False
ANSWER: True
RATIONALE: Proposed Regulations are published in the Federal Register.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
Copyright Cengage Learning. Powered by Cognero. Page 8
2025 Corporations, Partnerships, Estates and
Trusts 48th Edition by Annette Nellen
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,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
HAS VARIABLES: False
Copyright Cengage Learning. Powered by Cognero. Page 1
,Chapter 01: Understanding and Working with the Federal Tax Law
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
6. The favorable treatment of research and development expenses (via amortization deductions and tax
credits) is one means of controlling the economy.
a. True
Copyright Cengage Learning. Powered by Cognero. Page 2
,Chapter 01: Understanding and Working with the Federal Tax Law
b. False
ANSWER: False
RATIONALE: This favorable treatment encourages certain activities (e.g., fostering technological prog
control the economy.
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-Measurement
KEYWORDS: Bloom's: Understand
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
7. The encouragement of private-sector pension plans can be justified under the encouragement of certain
industries.
a. True
b. False
ANSWER: False
RATIONALE: Justified under social considerations and encouragement of certain activities
(e.g., savings).
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-Measurement
United States - AK - AICPA: FN-Reporting
KEYWORDS: Bloom's: Understand
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
8. One Internal Revenue Code section enables shareholders in a small business corporation to obtain an
ordinary deduction for any loss recognized on a stock investment.
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
Copyright Cengage Learning. Powered by Cognero. Page 3
,Chapter 01: Understanding and Working with the Federal Tax Law
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: United States - TX - AICPA: FN-Measurement
United States - AK - AICPA: 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
9. One of the justifications for the enactment of the tax law governing corporate reorganizations was the
economic benefit it would provide businesses (including making them more efficient).
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-Reporting
KEYWORDS: Bloom's: Understand
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
10. Although a corporation is subject to a Federal income tax, a partnership is not.
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-Reporting
KEYWORDS: Bloom's: Understand
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
11. The Federal income tax law allows a taxpayer to claim a deduction for state and local income taxes
but limits all state taxes to a maximum of $10,000.
a. True
b. False
ANSWER: True
Copyright Cengage Learning. Powered by Cognero. Page 4
,Chapter 01: Understanding and Working with the Federal Tax Law
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-Reporting
KEYWORDS: Bloom's: Understand
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
12. Alabama and South Carolina are community property states.
a. True
b. False
ANSWER: False
RATIONALE: They are common law states.
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-Reporting
KEYWORDS: Bloom's: Understand
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
13. A tax bill cannot originate in the Senate Finance Committee.
a. True
b. False
ANSWER: False
RATIONALE: Tax bills typically originate in the House Ways and Means Committee, but
the Senate Finance Committee may attach a tax bill as a rider to other
legislative proposals as was the case with the American Taxpayer Relief Act
of 2012.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: United States - AK - AICPA: FN-Reporting
United States - TX - AICPA: FN-Research
KEYWORDS: Bloom's: Understand
Copyright Cengage Learning. Powered by Cognero. Page 5
,Chapter 01: Understanding and Working with the Federal Tax Law
OTHER: Time: 2 min.
DATE CREATED: 1/31/2024 10:55 AM
DATE MODIFIED: 3/1/2024 1:43 PM
14. Taxpayers may read Committee Reports to determine the intent of Congress.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: 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
15. These Internal Revenue Code citations are incorrect: § 212(1) and § 1221(1).
a. True
b. False
ANSWER: False
RATIONALE: These sections are correct (and a part of the Internal Revenue Code).
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: 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
16. Internal Revenue Code § 6 involves gross income and § 7 outlines itemized deductions.
a. True
b. False
ANSWER: False
RATIONALE: These sections do not appear in the Internal Revenue Code.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
Copyright Cengage Learning. Powered by Cognero. Page 6
,Chapter 01: Understanding and Working with the Federal Tax Law
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: 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
17. Subchapter P refers to the subchapter in the Internal Revenue Code that deals with partners and
partnerships.
a. True
b. False
ANSWER: False
RATIONALE: Subchapter K (not Subchapter P) in the Internal Revenue Code deals with
partners and partnerships.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: 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
18. Regulations are arranged in a different sequence than the Internal Revenue Code.
a. True
b. False
ANSWER: False
RATIONALE: Regulations are arranged in the same sequence as the Internal Revenue Code.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: 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
19. Proposed Regulations have the force and effect of law.
Copyright Cengage Learning. Powered by Cognero. Page 7
, Chapter 01: Understanding and Working with the Federal Tax Law
a. True
b. False
ANSWER: False
RATIONALE: They carry little, if any, weight.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: 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
20. Temporary Regulations have the same authoritative value as Final Regulations for four years.
a. True
b. False
ANSWER: False
RATIONALE: Temporary Regulations have the same authoritative value for three (not four)
years.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
STATE STANDARDS: 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
21. Proposed Regulations are published in the Federal Register.
a. True
b. False
ANSWER: True
RATIONALE: Proposed Regulations are published in the Federal Register.
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: CPET.SWFT.2025.LO: 1-05 - LO: 1-05
NATIONAL STANDARDS: United States - BUSPROG: Comprehension - BUSPROG: Comprehension
Copyright Cengage Learning. Powered by Cognero. Page 8
