TEST BANK
Pearson's Federal Taxation 2026 Comprehensive
ST
Luke Richardson, Mitchell Franklin
────────────────────────────────────────────────────
UV
39th Edition
IA
?_
AP
TEST BANK
PR
OV
ED
??
, TABLE OF CONTENTS
Test Bank: Pearson's Federal Taxation 2026 Comprehensive, 39th Edition
By Luke Richardson and Mitchell Franklin
ST
INDIVIDUALS
CHAPTER 1 An Introduction to Taxation
UV
CHAPTER 2 Determination of Tax
CHAPTER 3 Gross Income: Inclusions
CHAPTER 4 Gross Income: Exclusions
CHAPTER 5 Property Transactions: Capital Gains and Losses
IA
CHAPTER 6 Deductions and Losses
CHAPTER 7 Business Expenses and Deferred Compensation
?_
CHAPTER 8 Itemized Deductions
CHAPTER 9 Losses and Bad Debts
CHAPTER 10 Depreciation, Cost Recovery, Amortization, and Depletion
AP
CHAPTER 11 Accounting Periods and Methods
CHAPTER 12 Property Transactions: Nontaxable Exchanges
CHAPTER 13 Property Transactions: Section 1231 and Recapture
PR
CHAPTER 14 Special Tax Computation Methods, Tax Credits, and Payment of Tax
CHAPTER 15 Tax Research
CHAPTER 16 Corporations
OV
CHAPTER 17 Partnerships and S Corporations
CHAPTER 18 Taxes and Investment Planning
CORPORATIONS, PARTNERSHIPS, ESTATES & TRUSTS
CHAPTER 19 Tax Research
ED
CHAPTER 20 Corporate Formations and Capital Structure
CHAPTER 21 The Corporate Income Tax
CHAPTER 22 Corporate Nonliquidating Distributions
??
CHAPTER 23 Other Corporate Tax Levies
CHAPTER 24 Corporate Liquidating Distributions
CHAPTER 25 Corporate Acquisitions and Reorganizations
, CHAPTER 26 Consolidated Tax Returns
CHAPTER 27 Partnership Formation and Operation
CHAPTER 28 Special Partnership Issues
ST
CHAPTER 29 S Corporations
CHAPTER 30 The Gift Tax
CHAPTER 31 The Estate Tax
UV
CHAPTER 32 Income Taxation of Trusts and Estates
CHAPTER 33 Administrative Procedures
IA
?_
AP
PR
OV
ED
??
, Section 1 Individuals Ch 1-18
Section 2 Corporations, Partnerships, Estates, & Trusts Ch 1-15
Pearson's Federal Taxation 2026: Individuals, 39e (Franklin)
Chapter I1: An Introduction to Taxation
ST
LO1: History of Taxation in the United States
1) The federal income tax is the dominant form of taxation by the federal government.
Answer: TRUE
Explanation: The federal income tax provides more revenues than any other tax.
UV
Page Ref.: I:1-2
Objective: 1
2) The Sixteenth Amendment to the U.S. Constitution permits the passage of a federal income tax law.
Answer: TRUE
Explanation: The Sixteenth Amendment amended the Constitution to permit the imposition of an income
IA
tax.
Page Ref.: I:1-2
Objective: 1
?_
3) When a change in the tax law is deemed necessary by Congress, the entire Internal Revenue Code must
be revised.
Answer: FALSE
Explanation: The federal income tax law is changed on an incremental basis.
AP
Page Ref.: I:1-3
Objective: 1
4) The largest source of federal revenues is the corporate income tax.
Answer: FALSE
Explanation: The largest source is the individual income tax.
PR
Page Ref.: I:1-3
Objective: 1
5) Until about 100 years ago, attempts to impose a federal income tax were ruled unconstitutional. The
amendment to the U.S. Constitution allowing the imposition of a federal income tax is the
OV
A) Second Amendment.
B) Thirteenth Amendment.
C) Sixteenth Amendment.
D) Nineteenth Amendment.
Answer: C
Explanation: The Sixteenth Amendment, ratified in 1913, gave Congress the power to impose a federal
ED
income tax.
Page Ref.: I:1-2
Objective: 1
??
1
Pearson's Federal Taxation 2026 Comprehensive
ST
Luke Richardson, Mitchell Franklin
────────────────────────────────────────────────────
UV
39th Edition
IA
?_
AP
TEST BANK
PR
OV
ED
??
, TABLE OF CONTENTS
Test Bank: Pearson's Federal Taxation 2026 Comprehensive, 39th Edition
By Luke Richardson and Mitchell Franklin
ST
INDIVIDUALS
CHAPTER 1 An Introduction to Taxation
UV
CHAPTER 2 Determination of Tax
CHAPTER 3 Gross Income: Inclusions
CHAPTER 4 Gross Income: Exclusions
CHAPTER 5 Property Transactions: Capital Gains and Losses
IA
CHAPTER 6 Deductions and Losses
CHAPTER 7 Business Expenses and Deferred Compensation
?_
CHAPTER 8 Itemized Deductions
CHAPTER 9 Losses and Bad Debts
CHAPTER 10 Depreciation, Cost Recovery, Amortization, and Depletion
AP
CHAPTER 11 Accounting Periods and Methods
CHAPTER 12 Property Transactions: Nontaxable Exchanges
CHAPTER 13 Property Transactions: Section 1231 and Recapture
PR
CHAPTER 14 Special Tax Computation Methods, Tax Credits, and Payment of Tax
CHAPTER 15 Tax Research
CHAPTER 16 Corporations
OV
CHAPTER 17 Partnerships and S Corporations
CHAPTER 18 Taxes and Investment Planning
CORPORATIONS, PARTNERSHIPS, ESTATES & TRUSTS
CHAPTER 19 Tax Research
ED
CHAPTER 20 Corporate Formations and Capital Structure
CHAPTER 21 The Corporate Income Tax
CHAPTER 22 Corporate Nonliquidating Distributions
??
CHAPTER 23 Other Corporate Tax Levies
CHAPTER 24 Corporate Liquidating Distributions
CHAPTER 25 Corporate Acquisitions and Reorganizations
, CHAPTER 26 Consolidated Tax Returns
CHAPTER 27 Partnership Formation and Operation
CHAPTER 28 Special Partnership Issues
ST
CHAPTER 29 S Corporations
CHAPTER 30 The Gift Tax
CHAPTER 31 The Estate Tax
UV
CHAPTER 32 Income Taxation of Trusts and Estates
CHAPTER 33 Administrative Procedures
IA
?_
AP
PR
OV
ED
??
, Section 1 Individuals Ch 1-18
Section 2 Corporations, Partnerships, Estates, & Trusts Ch 1-15
Pearson's Federal Taxation 2026: Individuals, 39e (Franklin)
Chapter I1: An Introduction to Taxation
ST
LO1: History of Taxation in the United States
1) The federal income tax is the dominant form of taxation by the federal government.
Answer: TRUE
Explanation: The federal income tax provides more revenues than any other tax.
UV
Page Ref.: I:1-2
Objective: 1
2) The Sixteenth Amendment to the U.S. Constitution permits the passage of a federal income tax law.
Answer: TRUE
Explanation: The Sixteenth Amendment amended the Constitution to permit the imposition of an income
IA
tax.
Page Ref.: I:1-2
Objective: 1
?_
3) When a change in the tax law is deemed necessary by Congress, the entire Internal Revenue Code must
be revised.
Answer: FALSE
Explanation: The federal income tax law is changed on an incremental basis.
AP
Page Ref.: I:1-3
Objective: 1
4) The largest source of federal revenues is the corporate income tax.
Answer: FALSE
Explanation: The largest source is the individual income tax.
PR
Page Ref.: I:1-3
Objective: 1
5) Until about 100 years ago, attempts to impose a federal income tax were ruled unconstitutional. The
amendment to the U.S. Constitution allowing the imposition of a federal income tax is the
OV
A) Second Amendment.
B) Thirteenth Amendment.
C) Sixteenth Amendment.
D) Nineteenth Amendment.
Answer: C
Explanation: The Sixteenth Amendment, ratified in 1913, gave Congress the power to impose a federal
ED
income tax.
Page Ref.: I:1-2
Objective: 1
??
1
