Schedule C is where an introductory tax course stops being about a single wage statement and starts being about judgment. One self-employed client generates a deduction question, a depreciation question, a self-employment tax computation and an estimated payment problem, all from the same short set of facts. Income Tax Fundamentals 2017, 35th Edition by Gerald E. Whittenburg teaches through layered examples of exactly that kind, and its assessment follows the same shape.
Why this test bank helps
When one fact pattern feeds four separate rules, the failure mode is answering the wrong question with confidence. The rationale under each item here names which rule is being applied and where it stops — that a deduction is allowed for the business portion only, that a tax is computed on a base which is not the same as taxable income — so the boundaries between the rules stay distinct. Keeping them distinct is most of what a tax paper is measuring.
What’s inside
- Questions following the thirty-fifth edition chapter by chapter, in the book’s own order.
- Multiple choice, true/false and short computational items in a typical tax paper’s mix.
- A written rationale under every question, naming the rule applied and where it stops.
- Concentrated practice on the self-employment and property chapters that carry the most marks.
- One organized PDF, available the moment checkout completes.
Topics covered
- Self-employment income — sole proprietor reporting, ordinary and necessary expenses and substantiation rules.
- Self-employment tax — the base it is computed on and the deduction available for part of it.
- Cost recovery — the depreciation system, expensing elections, bonus depreciation and listed property limits.
- Business use of a home and vehicle — the qualifying tests and the two methods of computing each deduction.
- Property transactions — basis, adjusted basis, holding period and the character of the resulting gain or loss.
- Retirement arrangements — individual accounts, plans available to the self-employed and contribution limits.
- Itemized deductions and credits — the main categories, floors and phase-outs, and refundable credits.
- Payments and procedure — withholding, estimated tax, penalties and the return filing process.
Who it’s for
Students on an individual income tax course working from the 2017 edition, including accounting majors preparing for a tax season internship and business students taking tax as an elective.
How to use it (the right way)
Attempt questions only after working the chapter’s own examples. Take a block closed-book, and where a question involves a computation, write the base down before the rate — most errors in tax are the right rate applied to the wrong figure. Read every rationale afterwards. This is a study aid, to be used in line with your institution’s academic-integrity policy, and never taken into a graded assessment.
Sample question (shows the format — your download contains the full set)
Q. A sole proprietor reports net profit of $50,000 and has no other earned income. Self-employment tax is computed at 15.3 percent on 92.35 percent of net earnings. What is the self-employment tax, to the nearest dollar?
- A. $7,065
- B. $7,650
- C. $3,825
- D. $3,533
Answer: A. Net earnings from self-employment are 92.35 percent of the $50,000 profit, or $46,175, and 15.3 percent of that is $7,065. B applies the rate to the full $50,000 and skips the adjustment that exists because an employee’s own share of the tax is not itself taxed. C is half of B and D is half of A; halving is the mistake of reporting only the employee-equivalent share, when a sole proprietor pays both halves. The deduction for one half is taken separately as an adjustment to income, not by reducing the tax.
Edition & format
- Matches: Income Tax Fundamentals 2017, 35th Edition, by Gerald E. Whittenburg (ISBN 9781337374064).
- Format: Digital PDF, delivered instantly after checkout.
- Access: Lifetime — re-download from your account whenever you need it.
A new edition of this text is issued for each tax year and the figures change with it. Please confirm the year, edition and ISBN above match your course before you buy.
Frequently asked questions
Which year is this? The 2017 edition, ISBN 9781337374064, written to that tax year. The 2016 edition is listed separately because its thresholds and forms differ.
How is it delivered? By instant download at the end of checkout, with the file also kept in your account for repeat access.
Are explanations included with the answers? Yes. Each question is followed by reasoning covering why the answer is right and why the alternatives are not.
Is it acceptable to study from this? As preparation, yes — it is a practice resource like any other. Use it in line with your institution’s academic-integrity policy and never inside a graded assessment.
See more study material for this subject in Accounting Test Banks.
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