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WGU C239 EXAM PROBLE MS | 110
QUESTIONS WITH 100% CORRECT
ANSWERS | VERIFIED | LATEST
UPDATE | 26 PAGES
Question: An individual has taxable income of $60,000. The
first $20,000 is taxed at 20%, the next $20,000 is taxed at 20%, and all income above $40,000 is taxed at 20%. Which tax structure is being applied to the individual's taxable income?Base Regressive Progressive Proportional
Correct answer: Proportional
Question: Which federal income tax structure imposes an
increasing marginal tax rate as the tax base increases?Regressive tax Incremental tax
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Progressive tax Proportional tax
Correct answer: Progressive
Question: Which partnership item would flow through to an
individual's tax return?Capital gains Gross income Partnership exemptions Dividends received deduction
Correct answer: Capital Gains
Question: An Eleventh Circuit client who files in the U.S.
Court of Federal Claims wants to know whether to include the terms of multiple options to renew a sale-leaseback to calculate a deduction. What is the authoritative reference?A Second Circuit case which used disjunctive analysis A tax court decision which used economic substance An Eleventh Circuit Case which analyzed sale-leaseback transactions that generate tax deductions
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A U.S. Court of Federal Claims case which analyzed sale- leaseback transactions for operating equipment
Correct answer: A U.S. Court of Federal Claims case which
analyzed sale-leaseback transactions for operating equipment
Question: Which tax rate calculation is an appropriate step in
tax planning strategy to reduce tax?The average tax rate, because it represents the percent of tax on each dollar The tax-exempt tax rate, because effective tax planning utilizes tax exempt bonds The effective tax rate, because economic income is less broad than taxable income The marginal tax rate, because it represents the tax applicable to the next taxable dollar
Correct answer: The marginal tax rate, because it represents
the tax applicable to the next taxable dollar
Question: Where is a corporation's non-business income
allocated when computing the corporation's state taxable income?
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To multiple states per the functional test To one state per the transaction test To the state of the corporate headquarters of the payer To each state where the income is earned
Correct answer: To the state of the corporate headquarters of
the payer
Question: What is a key operating element of doing business
as an S corporation?Fiscal year ends can be chosen without establishing a business purpose.Corporate profits are taxed at the shareholders level in the year earned.Shareholders are not subject to the at-risk or passive activity limitations.Nontaxable fringe benefits are available to S corporation employee shareholders.
Correct answer: Corporate profits are taxed at the
shareholders level in the year earned.