100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Test Bank For South-Western Federal Taxation 2023 Essentials of Taxation Individuals and Business Entities 26th Edition by Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young Chapter 1-18 $17.49
Add to cart
Quickly navigate to
Preview
  2.  
  3. Tests Bank
  4.  
  5. Tests Bank

Exam (elaborations)

Test Bank For South-Western Federal Taxation 2023 Essentials of Taxation Individuals and Business Entities 26th Edition by Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young Chapter 1-18
 0 purchase
  • Course
  • Tests Bank
  • Institution
  • Tests Bank
  • Book
  • South-Western Federal Taxation 2023

Test Bank For South-Western Federal Taxation 2023 Essentials of Taxation Individuals and Business Entities 26th Edition by Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young Chapter 1-18

Preview 4 out of 597  pages

Document information

  • November 7, 2024
  • 597
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • test bank for south western federal taxation 2023

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

  • Test Bank for South-Western Federal Taxation 2025: Comprehensive, 48th Edition by (Young/Persellin) ISBN: 9780357988817, All 30 Chapters Covered, Verified Latest Edition
  • Test Bank For South-Western Federal Taxation 2023 Comprehensive, 46th Edition by Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young Chapter 1-28
  • TEST BANK for South-Western Federal Taxation 2023: Individual Income Taxes 46th Edition by Young, Nellen, William Raabe, Persellin, Lassar and Cuccia. | Complete 20 Chapters
All for this textbook (7)

Written for

  • Tests Bank
All documents for this subject (5988)

Seller

avatar-seller
SolutionsStuvia

Reviews received

Content preview

Name: Class: Date:




Test Bank For
South-Western Federal Taxation 2023 Essentials of Taxation Individuals and Business Entities 26th
Edition by Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young
Chapter 1-18
Chapter 1
Indicate whether the statement is true or false.

1. Carol and Candace are equal partners in Peach Partnership. In the current year, Peach had a net profit of $75,000
($250,000 gross income – $175,000 operating expenses) and distributed $25,000 to each partner. Peach must pay tax on
$75,000 of income.
a. True
b. False

2. The formula for the Federal income tax on corporations is the same as that applicable to individuals.
a. True
b. False

3. The annual exclusion, currently $15,000, is available for gift and estate tax purposes.
a. True
b. False

4. To lessen or eliminate the effect of multiple taxation, a taxpayer who is subject to both foreign and U.S. income taxes
on the same income is allowed either a deduction or a credit for the foreign tax paid.
a. True
b. False

5. The Federal excise tax on gasoline has a proportional effect on all taxpayers (that is, neither progressive or regressive).
a. True
b. False

6. The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business
use personalty.
a. True
b. False

7. Ultimately, most taxes are paid by individuals.
a. True
b. False

8. States impose either a state income tax or a general sales tax, but not both types of taxes.
a. True
b. False

9. The tax law provides various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain
additional education. These provisions can be justified on both economic and equity grounds.
Page 1

,Name: Class: Date:



a. True
b. False

10. Donald owns a 45% interest in a partnership that earned $130,000 in the current year. He also owns 45% of the stock
in a C corporation that earned $130,000 during the year. Donald received $20,000 in distributions from each of the two
entities during the year. With respect to this information, Donald must report $78,500 of income on his individual income
tax return for the year.
a. True
b. False

11. Under state amnesty programs, all delinquent and unpaid income taxes are forgiven.
a. True
b. False

12. Not all of the states that impose a general sales tax also have a use tax.
a. True
b. False

13. Currently, the Federal corporate income tax is less progressive than the individual income tax.
a. True
b. False

14. Stealth taxes have the effect of generating additional taxes from all taxpayers.
a. True
b. False

15. A parent employs his twin daughters, age 17, in his sole proprietorship. The daughters are not subject to FICA
coverage.
a. True
b. False

16. Mona inherits her mother’s personal residence, which she converts to a furnished rental house. These changes should
affect the amount of ad valorem property taxes levied on the properties.
a. True
b. False

17. An inheritance tax is a tax on a decedent’s right to pass property at death.
a. True
b. False

18. Quail Corporation is a C corporation that generates net income of $125,000 during the current year. If Quail paid
dividends of $25,000 to its shareholders, the corporation must pay tax on $100,000 of net income. Shareholders must
report the $25,000 of dividends as income.
a. True
b. False

19. The Federal estate and gift taxes are examples of progressive rate taxes.
Page 2

,Name: Class: Date:



a. True
b. False

20. Because it is consistent with the wherewithal to pay concept, the tax law requires a seller to recognize a gain in the
year the installment sale occurs.
a. True
b. False

21. Sales made over the internet are not exempt from the application of a general sales (or use) tax.
a. True
b. False

22. Julius, a married taxpayer, makes gifts to each of his six children. A maximum of twelve annual exclusions could be
allowed as to these gifts.
a. True
b. False

23. A safe and easy way for a taxpayer to avoid local and state sales taxes is to make the purchase in a state that levies no
such taxes.
a. True
b. False

24. Currently, the tax base for the Social Security component of the FICA is not limited to a dollar amount.
a. True
b. False

25. On transfers by death, the Federal government relies on an estate tax, while states may impose an estate tax, an
inheritance tax, both taxes, or neither tax.
a. True
b. False

26. In 2022, José, a widower, sells land (fair market value of $100,000) to his daughter, Linda, for $50,000. José has not
made a taxable gift.
a. True
b. False

27. Two persons who live in the same state but in different counties may not be subject to the same general sales tax rate.
a. True
b. False

28. An excise tax is often used to try to influence behavior.
a. True
b. False

29. Under the usual state inheritance tax, two heirs, a cousin and a son of the deceased, would not be taxed at the same
rate.
a. True
Page 3

, Name: Class: Date:



b. False

30. The Medicare component of the FICA tax (1.45% on wages) is progressive since the tax due increases as wages
increase.
a. True
b. False

31. Even if property tax rates are not changed, the amount of ad valorem taxes imposed on realty may not remain the
same.
a. True
b. False

32. The amount of the state excise taxes on gasoline varies from state to state.
a. True
b. False

33. One of the motivations for making a gift is to save on income taxes.
a. True
b. False

34. For Federal income tax purposes, there never has been a general amnesty period.
a. True
b. False

35. No state may offer an income tax amnesty program more than once.
a. True
b. False

36. When a state decouples from a Federal tax provision, it means that this provision will not apply for state income tax
purposes.
a. True
b. False

37. Under Clint’s will, all of his property passes to either the Lutheran Church or to his wife. No Federal estate tax will be
due on Clint’s death.
a. True
b. False

38. Jason’s business warehouse is destroyed by fire. Because the insurance proceeds exceed the basis of the property, a
gain results. If Jason shortly reinvests the proceeds in a new warehouse, no gain is recognized due to the application of the
wherewithal to pay concept.
a. True
b. False

39. As a matter of administrative convenience, the IRS would prefer to have Congress decrease (rather than increase) the
amount of the standard deduction allowed to individual taxpayers.
a. True
Page 4

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller SolutionsStuvia. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $17.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

65352 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Recently viewed by you

Exam (elaborations) ·

(0)

REVISION QUESTIONS BUSINESS CONSULTANCY BUSS 421 Latest Verified Review 2023 Practice Questions and Answers for Exam Preparation, 100% Correct with Explanations, Highly Recommended, Download to Score

Exam (elaborations) ·

(0)

Test Bank for Understanding the Political World A Comparative Introduction to Political Science 13th Edition (Global Edition) By James Danziger, Lindsey Lupo (All Chapters, 100% Original Verified, A+

Exam (elaborations) ·

(2)

Test Bank For Pharmacology: A Patient-Centered Nursing Process Approach 10th Edition by Linda E. McCuistion; Jennifer J. Yeager; Mary Beth Winton; Kathleen DiMaggio 9780323642477 Chapter 1-55 Complete

Exam (elaborations) ·

(1)

Test Bank For Pharmacology: A Patient-Centered Nursing Process Approach 10th Edition by Linda E. McCuistion; Jennifer J. Yeager; Mary Beth Winton; Kathleen DiMaggio 9780323642477 Chapter 1-55 Complete

Exam (elaborations) ·

(1)

NUR 635 | NUR 635 MIDTERM ACTUAL EXAM ALL QUESTIONS AND WELL ELABORATED ANSWERS LATEST SPRING-SUMMER UPDATE 2024-2025 ALREADY A GRADED HIGHLY RECOMMENDED BY EXPERTS | NEW AND REVISED| GRAND CANYON UNI

Package deal ·

(0)

RN Pharmacology A Relias Actual Exam Questions With Correct Answers 100% Correct 2023/2024 & Relias Dysrhythmia Basic Test Answers 2023 Dysrhythmia Basic A Correct (Graded A+ 100% Verified Best Guide

Exam (elaborations) ·

(1)

Test Bank For Fundamentals of Nursing (Two Volume Set) with Davis Advantage & Davis Edge 4th Edition by Judith M Wilkinson | 9780803676909 |2020/2021 | Chapter 1-46 | All Chapters with Answers and Rat

Exam (elaborations) ·

(0)

Midterm Exam: NR547 / NR 547 (Latest Update 2024 / 2025) Differential Diagnosis in Psychiatric-Mental Health across the Lifespan Practicum | Study Review Questions & Answers | 100% Correct | Grade A -

Package deal ·

(0)

2023 HESI Pharmacology Exams Set | TEST BANK, Practice exam, NCLEX-PN, RN, HESI RN, Form A+B, HESI RN V1-V3, Study Guide, Exit RN | 29 Versions | Guaranteed A+ Test Bank Actual Questions and Answers

$17.49
  • (0)
Add to cart
Added