Test Bank For South-Western Federal Taxation 2026 Essentials of Taxation Individuals and Business Entities 28th Edition By Annette Nellen Andrew Cuccia Mark Persellin James Young (All Chapters, 100% Original Verified, A+ Grade) (603 pages)

Chapter 01: Introduction to Taxation Powered by Cognero Page 1 True / False 1. The Medicare component of the FICA tax (1.45% on wages) is progressive as the tax due increases as wages increase. a. True b. False 2. The Federal estate and gift taxes are examples of progressive rate taxes. a. True b. False 3. The Federal excise tax on gasoline has a proportional effect on all taxpayers (that is, neither progressive or regressive). a. True b. False 4. Currently, the Federal corporate income tax is less progressive than the individual income tax. a. True b. False 5. 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 6. A fixture will be subject to the ad valorem tax on personalty rather than the ad valorem tax on realty. a. True b. False 7. 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 8. The ad valorem tax on personal use personalty is more often avoided by taxpayers than the ad valorem tax on business use personalty.