Fundamentals of Taxation 2025 Release Cruz Test Bank
Test Bank for Fundamentals of Taxation 2025 Release By Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast and Dan Schisler, ISBN-10: 126623439X, ISBN-13: 9781266234392
Table of Contents
1 Introduction to Taxation, the Income Tax Formula, and Form 1040
2 Expanded Tax Formula, Form 1040, and Basic Concepts
3 Gross Income: Inclusions and Exclusions
4 Adjustments for Adjusted Gross Income
5 Itemized Deductions
6 Self-Employed Business Income (Line 3 of Schedule 1 and Schedule C)
7 Capital Gains and Other Sales of Property (Schedule D and Form 4797)
8 Rental Property, Royalties, and Income from Flow- Through Entities (Line 5, Schedule 1, and Schedule E)
9 Tax Credits (Form 1040, Lines 19, 20, 27 through 29, and 31, Schedule 3, Lines 1 through 14)
10 Payroll Taxes
11 Retirement and Other Tax-Deferred Plans and Annuities
12 Special Property Transactions
13 At-Risk/Passive Activity Loss Rules and the Individual Alternative Minimum Tax
14 Partnership Taxation
15 Corporate Taxation
TRUE/FALSE – Write ‘T’ if the statement is true and ‘F’ if the statement is false.
1) The U.S. individual income tax system is an example of a progressive tax rate structure.
⊚ true
⊚ false
2) A proportional tax rate structure is a tax where the tax rate remains at the same rate regardless of the tax base.
⊚ true
⊚ false
3) Under a flat tax, the marginal tax rate and the average tax rate are different.
⊚ true
⊚ false
4) State and local taxes levied on either property or sales are examples of progressive taxes.
⊚ true
⊚ false
5) With a regressive tax, the tax rate increases as the tax base gets larger.
⊚ true
⊚ false
6) The marginal tax rate is the total tax liability divided by the taxable income.
⊚ true
⊚ false
7) The average tax rate is the total tax liability divided by the taxable income.
⊚ true
⊚ false
8) All individual income tax returns follow the basic structure of the simplified tax formula.
⊚ true
⊚ false
9) With a progressive rate structure, the average tax rate is always smaller than the marginal tax rate.
⊚ true
⊚ false
10) At high levels of taxable income, the average tax rate and the marginal tax rate will always be the same.
⊚ true
⊚ false
