South-Western Federal Taxation 2025 Comprehensive 48th Edition – James C. Young – Complete Test Bank (Chapters 1–30) with Detailed Answers

TEST BANK
South-Western Federal Taxation 2025: Comprehensive,
48th Edition by Young Complete 30 Chapters




TEST BANK



Page 1
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,TABLE OF CONTENTS VBN VBN VBN




Chapter 1: An Introduction to Taxation and Understanding the Federal Tax Law
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Chapter 2: Working with the Tax Law
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Chapter 3: Tax Formula and Tax Determination
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Chapter 4: Gross Income: Concepts and Inclusions
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Chapter 5: Gross Income: Exclusions
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Chapter 6: Deductions and Losses: In General 7-1 Bad Debts
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Chapter 8: Depreciation, Cost Recovery, Amortization, and Depletion
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Chapter 9: Deductions: Employee and Self-Employed-Related Expenses
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Chapter 10: Deductions and Losses: Certain Itemized Deductions
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Chapter 11: Investor Losses
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Chapter 12: Tax Credits and Payments
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Chapter 13: Property Transactions: Determination of Gain or Loss, Basis Considerations, and Nontaxab
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Chapter 14: Property Transactions: Capital Gains and Losses, § 1231, and Recapture Provisions
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Chapter 15: The Deduction for Qualified Business Income for Noncorporate Taxpayers
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Chapter 16: Accounting Periods and Methods
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Chapter 17: Corporations: Introduction and Operating Rules
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Chapter 18: Corporations: Organization and Capital Structure
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Chapter 19: Corporations: Distributions Not in Complete Liquidation
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Chapter 20: Corporations: Distributions in Complete Liquidation and an Overview of Reorganizations
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Chapter 21: Partnerships: Formation, Operation, and Basis
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Chapter 22: Partnerships: Distributions, Transfer of Interests, and Terminations
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Chapter 23: S Corporations
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Chapter 24: Taxes in the Financial Statements
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Chapter 25: Exempt Entities
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Chapter 26: Multistate Corporate Taxation
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Chapter 27: Taxation of International Transactions
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Chapter 28: Tax Practice and Ethics
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Chapter 29: The Federal Gift and Estate Taxes
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Chapter 30: Income Taxation of Trusts and Estates
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Page 2
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,Chapter 01 2025 - Comprehensive V B N V B N V B N V B N




Answers are at the end of e VBN VBN VBN VBN VBN VBN




ach chapter VBN




Indicate whether the statement is true or false.
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V B N 1. If more IRS audits are producing a higher number of no change results, this indicates increased compliance on the part o
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f taxpayers. VBN




True
False

V B N 2. Thefirstincometaxonindividuals(aftertheratificationoftheSixteenthAmendmenttotheConstitution)levied tax rates fro
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m a low of 1% to a high of 6%. VBN VBN VBN VBN VBN VBN VBN VBN VBN




True
False

V B N 3. Stealth taxes have the effect of generating additional taxes from all taxpayers.
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True
False

V B N 4. If fraud is involved, there is no time limit on the assessment of a deficiency by the IRS.
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True
False

V B N 5. Under state amnesty programs, all delinquent and unpaid income taxes are forgiven.
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True
False

V B N 6. The Federal estate and gift taxes are examples of progressive rate taxes.
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True
False

V B N 7. The IRS is required to redetermine the interest rate on underpayments and overpayments once a year.
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True
False

V B N 8. The Federal income tax on individuals generates more revenue than the Federal income tax on corporations.
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True
False

V B N 9. To mitigate the effect of the annual accounting period concept, the tax law permits the carryforward of excess charita
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ble contributions of a particular year to other years. VBN VBN VBN VBN VBN VBN VBN VBN




True
False

V B N 10. Unlike FICA, FUTA requires that employers comply with state as well as Federal rules.
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True
False




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, Name: Class: Date:

Chapter 01 2025 - Comprehensive V B N V B N V B N V B N




V B N 11.If a special agent becomes involved in the audit of a return, this indicates that the IRS suspects that fraud is involved.
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True
False

V B N 12. Two persons who live in the same state but in different counties may not be subject to the same general sales tax rate.
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True
False

V B N 13. Under the usual state inheritance tax, two heirs, a cousin and a son of the deceased, would not be taxed at the same r
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ate.
True
False

V B N 14. Varioustaxprovisionsencouragethecreationof certaintypesofretirementplans. Such provisions canbe justified o
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n both economic and social grounds.
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True
False

V B N 15. A parent employs her twin daughters, age 17, in her sole proprietorship. The daughters are not subject to FICA coverag
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e.
True
False

V B N 16. Foromissionsfromgrossincomeinexcessof25%ofthatreported,thereisnostatuteoflimitationson additional in
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come tax assessments by the IRS. VBN VBN VBN VBN VBN




True
False

V B N 17. Not all of the states that impose a general sales tax also have a use tax.
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True
False

V B N 18. States impose either a state income tax or a general sales tax, but not both types of taxes.
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True
False

V B N 19. The amount of the state excise taxes on gasoline varies from state to state.
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True
False

V B N 20. UponauditbytheIRS,Faithisassessedadeficiencyof$40,000ofwhich$25,000isattributabletonegligence.
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The20%negligencepenaltywillapplyto$25,000. VBN VBN VBN VBN VBN VBN VBN




True
False




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