WGU C237 Taxation I Exam Questions with Correct Answers 100% Verified By Experts|
2025/2026 Latest Update
Describe the history of taxation in the US unconstitutional 1895
Sources of Tax Law-Legislative Branch - Internal Revenue Code (Top)
- Congressional Committee Reports
Describe the criteria of an equitable tax structure Equity Is it Fair
Simplicity understandability
Economy minimal compliance and administrative costs
-
Convenience no burden of records and compliance
Certainty Stability and certainty of amount of taxes
Regressive decreases as tax base increases
Proportional flat tax
Progressive tax increases as tax base increases
Gross Income Total income - Exclusions
Taxable income Gross income-Deductions-Exemptions
, Income before tax credits Taxable income x tax rate
Total tax liability Income before tax credits-tax credits
balance due or refund total tax liability - Prepayments
Distinguish between various types of taxes State Tax
Local Income
Franchise Tax
Wealth transfer tax
Gift tax
Federal Estate tax
Property tax
Federal excise tax - customs
Sales Tax
Identify different types of entities that are subject to taxation in the US -Tax paying entities
Individuals
C Corps
-Flow through Entities
sole proprietorship
Partnerships
S Corps
LLC
LL Partnerships
Trusts
2025/2026 Latest Update
Describe the history of taxation in the US unconstitutional 1895
Sources of Tax Law-Legislative Branch - Internal Revenue Code (Top)
- Congressional Committee Reports
Describe the criteria of an equitable tax structure Equity Is it Fair
Simplicity understandability
Economy minimal compliance and administrative costs
-
Convenience no burden of records and compliance
Certainty Stability and certainty of amount of taxes
Regressive decreases as tax base increases
Proportional flat tax
Progressive tax increases as tax base increases
Gross Income Total income - Exclusions
Taxable income Gross income-Deductions-Exemptions
, Income before tax credits Taxable income x tax rate
Total tax liability Income before tax credits-tax credits
balance due or refund total tax liability - Prepayments
Distinguish between various types of taxes State Tax
Local Income
Franchise Tax
Wealth transfer tax
Gift tax
Federal Estate tax
Property tax
Federal excise tax - customs
Sales Tax
Identify different types of entities that are subject to taxation in the US -Tax paying entities
Individuals
C Corps
-Flow through Entities
sole proprietorship
Partnerships
S Corps
LLC
LL Partnerships
Trusts
