Taxation II Final Exam 2023/2024
Practice Questions with Verified Answers
Your Pathway to Tax Expertise
Developed by Leading Tax Scholars
June 2025
This practice guide features 83 carefully curated questions with verified
answers, covering all essential Taxation II topics, designed to ensure success in
the 2023/2024 final exam and professional tax applications.
Dedicated to fostering confidence and proficiency in advanced tax principles.
,Contents
1 Introduction 2
1.1 Exam Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2 Practice Questions and Verified Answers 2
2.1 Corporate Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.2 Partnership Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.3 Tax Planning and Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.4 Individual Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.5 Tax Compliance and Ethics . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.6 Advanced Tax Topics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.7 Taxation of Trusts and Estates . . . . . . . . . . . . . . . . . . . . . . . 13
2.8 International Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.9 Special Topics in Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . 16
2.10 Practical Tax Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3 Study Strategies 20
4 Resources 20
5 Conclusion 21
1
, Taxation II Final Exam 2023/2024 Practice Questions with Verified Answers
Introduction
Taxation II explores advanced U.S. tax law, focusing on corporate, partnership,
trust, individual, and international taxation, as well as tax planning and com-
pliance under the Internal Revenue Code (IRC). The 2023/2024 final exam tests
students’ ability to apply these concepts to complex scenarios, preparing them
for professional tax roles. This practice guide offers 83 verified questions with
detailed answers, ensuring comprehensive preparation for exam success and
practical mastery.
Exam Overview
The Taxation II final exam typically includes:
• Multiple-Choice Questions: Evaluating IRC provisions and tax concepts.
• Computational Problems: Calculating taxable income, credits, or deductions.
• Scenario-Based Questions: Analyzing tax implications in real-world contexts.
Exams are often open-book, unproctored, and cover all course material. The 83
questions in this guide exceed standard exam scope, providing rigorous practice
with answers verified for accuracy and aligned with 2023 tax regulations.
Practice Questions and Verified Answers
This section presents 83 questions, organized by topic, with verified answers to
promote deep understanding and exam readiness.
Corporate Taxation
1. What is the 2023 federal corporate income tax rate?
• Answer: 21%. Under the Tax Cuts and Jobs Act (TCJA) of 2017 (IRC Section
11), C corporations are taxed at a flat 21% rate. Example: $1,000,000 taxable
income incurs $210,000 tax liability. This rate streamlines calculations but
introduces double taxation at the corporate and shareholder levels. State
taxes may also apply, requiring strategic planning.
• Calculation:
Tax = 1, 000, 000 × 0.21 = 210, 000
2
Practice Questions with Verified Answers
Your Pathway to Tax Expertise
Developed by Leading Tax Scholars
June 2025
This practice guide features 83 carefully curated questions with verified
answers, covering all essential Taxation II topics, designed to ensure success in
the 2023/2024 final exam and professional tax applications.
Dedicated to fostering confidence and proficiency in advanced tax principles.
,Contents
1 Introduction 2
1.1 Exam Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2 Practice Questions and Verified Answers 2
2.1 Corporate Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2.2 Partnership Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.3 Tax Planning and Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.4 Individual Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.5 Tax Compliance and Ethics . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.6 Advanced Tax Topics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.7 Taxation of Trusts and Estates . . . . . . . . . . . . . . . . . . . . . . . 13
2.8 International Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.9 Special Topics in Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . 16
2.10 Practical Tax Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
3 Study Strategies 20
4 Resources 20
5 Conclusion 21
1
, Taxation II Final Exam 2023/2024 Practice Questions with Verified Answers
Introduction
Taxation II explores advanced U.S. tax law, focusing on corporate, partnership,
trust, individual, and international taxation, as well as tax planning and com-
pliance under the Internal Revenue Code (IRC). The 2023/2024 final exam tests
students’ ability to apply these concepts to complex scenarios, preparing them
for professional tax roles. This practice guide offers 83 verified questions with
detailed answers, ensuring comprehensive preparation for exam success and
practical mastery.
Exam Overview
The Taxation II final exam typically includes:
• Multiple-Choice Questions: Evaluating IRC provisions and tax concepts.
• Computational Problems: Calculating taxable income, credits, or deductions.
• Scenario-Based Questions: Analyzing tax implications in real-world contexts.
Exams are often open-book, unproctored, and cover all course material. The 83
questions in this guide exceed standard exam scope, providing rigorous practice
with answers verified for accuracy and aligned with 2023 tax regulations.
Practice Questions and Verified Answers
This section presents 83 questions, organized by topic, with verified answers to
promote deep understanding and exam readiness.
Corporate Taxation
1. What is the 2023 federal corporate income tax rate?
• Answer: 21%. Under the Tax Cuts and Jobs Act (TCJA) of 2017 (IRC Section
11), C corporations are taxed at a flat 21% rate. Example: $1,000,000 taxable
income incurs $210,000 tax liability. This rate streamlines calculations but
introduces double taxation at the corporate and shareholder levels. State
taxes may also apply, requiring strategic planning.
• Calculation:
Tax = 1, 000, 000 × 0.21 = 210, 000
2
