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TEST BANK for South-Western Federal Taxation 2024 Comprehensive Volume 47th Edition By James Young and Persellin all chapters covered $20.99
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TEST BANK for South-Western Federal Taxation 2024 Comprehensive Volume 47th Edition By James Young and Persellin all chapters covered

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South-Western Federal Taxation 2024 James Young and Persellin tax book Federal Taxation comprehensive volume 2024 tax book edition Federal Taxation test bank South-Western Taxation book chapters Volume 47th tax book Federal Taxation textbook 2024 James Young tax textbook Persellin Federal ...

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  • December 30, 2024
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TEST BANK
South-Western Federal Taxation
2024 Comprehensive Volume 47th Edition
By James Young and Persellin all chapters covered




1

,TestubankuIncomeuTax



CHAPTER 1: AN INTRODUCTION TO TAXATION AND UNDERSTANDING THE FEDERAL TAX LAW
u u u u u u u u u u u




1. TheuratificationuofutheuSixteenthuAmendmentutoutheuU.S.uConstitutionuwasunecessaryutouvalidateutheu
Federaluincomeutaxuonucorporations.

a. True
b. False


ANSWER: False
RATIONALE:u TheuSixteenthuAmendmentuvalidateduonlyutheutaxuonuindividuals.uTheuincomeutaxuonucorporationsu
hadubeenupreviouslyusanctionedubyutheucourts.


2. BeforeutheuSixteenthuAmendmentutoutheuConstitutionuwasuratified,uthereuwasunouvaliduFederaluincomeu
taxuonuindividuals.
a. True
b. False


ANSWER: False
RATIONALE:
ThereuexisteduauFederaluincomeutaxuduringutheuCiviluWaruthatuwasusanctionedubyutheuU.S
.uSupremeuCourt.


3. Theufirstuincomeutaxuonuindividualsu(afterutheuratificationuofutheuSixteenthuAmendmentutoutheu
Constitution)uleviedutaxuratesufromuaulowuofu2%utouauhighuofu6%.
a. True
b. False


2

,ANSWER: True


4. TheuFederaluincomeutaxuonuindividualsugeneratesumoreurevenueuthanutheuFederaluincomeutaxuonu
corporations.




3

, a. True

b. False


ANSWER: True


5. TheupayasyougoufeatureuofutheuFederaluincomeutaxuonuindividualsuconformsutouAdamuSmith’sucanonuof
ucertainty.



a. True
b. False


ANSWER: False
RATIONALE:u Pay-as-you-
gourefersutoutheuwithholdinguprovisionsuapplicableutouwagesuanduotherutypesuofuincomeuanduaddsuconvenienceutout
heutaxusystem.


6. Becauseutheulawuisucomplicated,umostuindividualutaxpayersuareunotuableutoucompleteutheiruFedera
luincomeutaxureturnsuwithoutuoutsideuassistance.
a. True
b. False


ANSWER: True
RATIONALE:u Approximatelyu60%uuseutaxureturnupreparers,uwhileuslightlyumoreuthanu32%upurchaseutaxureturnusoft
ware.
7. TheuFICAutaxu(Medicareucomponent)uonuwagesuisuprogressiveusinceutheutaxudueuincreasesuasuwag
esuincrease.
a. True
b. False


ANSWER: False
RATIONALE:u TheuFICAutaxu(Medicareucomponent)uisuproportionalubecauseutheurateuisuconstanturegardlessuofutheu
wagesuearned.

4

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