Test Bank — Income Tax Fundamentals, 38th Edition — Gerald E. Whittenburg, Martha Altus-Buller & Steven Gill — Latest Update 2025/2026 — (All Chapters Covered 1–12)

Income Tax Fundamentals
38th Edition
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TEST BANK
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IA
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Gerald E. Whittenburg
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Martha Altus-Buller

Steven Gill
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Comprehensive Test Bank for Instructors and

Students
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© Gerald E. Whittenburg, Martha Altus-Buller & Steven Gill. All rights reserved.
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Reproduction or distribution without permission is prohibited.




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, Test Bank for Income Tax Fundamentals (38th Edition)
Gerald E. Whittenburg, Martha Altus-Buller, & Steven Gill



UNIT 1: FOUNDATIONS OF INDIVIDUAL TAXATION
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1. The Individual Income Tax Return
2. Gross Income and Exclusions

UNIT 2: BUSINESS INCOME AND DEDUCTIONS
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3. Business Income and Expenses, Part I
4. Business Income and Expenses, Part II

UNIT 3: DEDUCTIONS, CREDITS, AND SPECIAL TAXES
5. Itemized Deductions and Other Incentives
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6. Credits and Special Taxes

UNIT 4: TIMING, CAPITAL TRANSACTIONS, AND COMPLIANCE
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7. Accounting Periods and Methods and Depreciation
8. Capital Gains and Losses
9. Withholding, Estimated Payments, and Payroll Taxes

UNIT 5: BUSINESS ENTITIES AND TAX ADMINISTRATION
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10. Partnership Taxation
11. The Corporate Income Tax
12. Tax Administration and Tax Planning
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, Chapter 1: The Individual Income Tax Return

1. A corporation is a reporting entity but not a tax-paying entity.
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True False



2. Partnership capital gains and losses are allocated separately to each of the partners.
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True False



3. Married taxpayers may double their standard deduction amount by filing separate
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returns.
True False
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4. An item is not included in gross income unless the tax law specifies that the item is
subject to taxation.
True False
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5. For taxpayers who do not itemize deductions, the standard deduction amount is
subtracted from the taxpayer's adjusted gross income.
True False
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6. A taxpayer with self-employment income of $600 must file a tax return.
True False
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7. A dependent child with earned income in excess of the available standard deduction
amount must file a tax return.
True False
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8. A single taxpayer, who is not blind and who is under age 65, with income of $8,750
must file a tax return.
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True False

, 9. If a taxpayer is due a refund, it will be mailed to the taxpayer regardless of whether he
or she files a tax return.
True False



10. Taxpayers with self-employment income of $400 or more must file a tax return.
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True False
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11. If your spouse dies during the tax year and you do not remarry, you must file as
single for the year of death.
True False
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12. Taxpayers who do not qualify for married, head of household, or qualifying widow or
widower filing status must file as single.
True False
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13. If an unmarried taxpayer paid more than half the cost of keeping a home which is the
principal place of residence of a nephew, who is not her dependent, she may use the
head of household filing status.
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True False



14. The maximum official individual income tax rate for 2012 is 35 percent.
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True False



15. All taxpayers may use the tax rate schedule to determine their tax liability.
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True False



16. The head of household tax rates are higher than the rates for a single taxpayer.
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True False



17. Most states are community property states.
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True False