WGU C237 TAXATION I (OA) EXAM WITH CORRECT
ACTUAL QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST 2026/2027
Which tax rate structure is exemplified by the FICA portion of Social
Security taxes?
A. Effective
B. Regressive
C. Progressive
D. Proportional ......ANSWER......B. Regressive
An individual is salaried, is not operating a business, is divorced with
one child living at home, earned $93,000 in wages for 2021, and has
$17,900 of itemized deductions.
What is this individual's tax liability?
A. $6,682
B. $10,620
C. $10,818
D. $14,889 ......ANSWER......D. $14,889
pg. 1
,Which tax is based on the value of an individual's real estate?
A. Property tax
B. Franchise tax
C. Federal estate tax
D. Wealth transfer tax ......ANSWER......A. Property tax
Which entities are considered flow-through entities in the U.S. tax
system?
A. Individual taxpayers
B. Religious associations
C. Regular C corporations
D. Limited liability partnerships ......ANSWER......D. Limited liability
partnerships
A taxpayer fails to report income that exceeds 25% of reported gross
income but files the return on time. How many years after a return was
originally due might the statute of limitations expire?
A. 3 years
B. 4 years
pg. 2
,C. 5 years
D. 6 years ......ANSWER......D. 6 years
Which component of a tax practice focuses on minimizing taxes paid
and maximizing after-tax cash flows while accommodating clients' other
desires?
A. Tax planning
B. Tax research
C. Tax procedure
D. Tax compliance ......ANSWER......A. Tax planning
Which tax term defines a personal expenditure, such as charitable
contributions and medical expenses, which taxpayers may claim if they
keep records?
A. Itemized deductions
B. Standard deductions
C. Personal exemptions
D. Dependency exemptions ......ANSWER......A. Itemized deductions
A single individual earned wages of $50,000 working at a bank. The
individual received a $6,000 gift from a parent to go to Europe,
inherited $10,000 from a relative, and received $500 interest from a
pg. 3
, municipal bond. The individual has no dependents and has itemized
deductions of $11,000. What is this individual's tax liability for 2021?
A. $4,295
B. $4,355
C. $6,298
D. $6,529 ......ANSWER......A. $4,295
A married couple, ages 29 and 32, have normal vision and one
dependent daughter who is 14 years old. During 2021, one of the
individuals earned taxable wages of $54,000, and the other earned
$100,000. The couple also earned $400 of interest income from their
joint savings account, $1,200 interest from a municipal bond, and
incurred $23,590 of eligible itemized deductions. The couple will be
filing a joint return. What is this couple's federal income tax?
A. $19,943
B. $20,207
C. $20,275
D. $20,539 ......ANSWER......A. $19,943
Which scenario represents a realization of income?
A. A bank loan of $2,000
pg. 4
ACTUAL QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST 2026/2027
Which tax rate structure is exemplified by the FICA portion of Social
Security taxes?
A. Effective
B. Regressive
C. Progressive
D. Proportional ......ANSWER......B. Regressive
An individual is salaried, is not operating a business, is divorced with
one child living at home, earned $93,000 in wages for 2021, and has
$17,900 of itemized deductions.
What is this individual's tax liability?
A. $6,682
B. $10,620
C. $10,818
D. $14,889 ......ANSWER......D. $14,889
pg. 1
,Which tax is based on the value of an individual's real estate?
A. Property tax
B. Franchise tax
C. Federal estate tax
D. Wealth transfer tax ......ANSWER......A. Property tax
Which entities are considered flow-through entities in the U.S. tax
system?
A. Individual taxpayers
B. Religious associations
C. Regular C corporations
D. Limited liability partnerships ......ANSWER......D. Limited liability
partnerships
A taxpayer fails to report income that exceeds 25% of reported gross
income but files the return on time. How many years after a return was
originally due might the statute of limitations expire?
A. 3 years
B. 4 years
pg. 2
,C. 5 years
D. 6 years ......ANSWER......D. 6 years
Which component of a tax practice focuses on minimizing taxes paid
and maximizing after-tax cash flows while accommodating clients' other
desires?
A. Tax planning
B. Tax research
C. Tax procedure
D. Tax compliance ......ANSWER......A. Tax planning
Which tax term defines a personal expenditure, such as charitable
contributions and medical expenses, which taxpayers may claim if they
keep records?
A. Itemized deductions
B. Standard deductions
C. Personal exemptions
D. Dependency exemptions ......ANSWER......A. Itemized deductions
A single individual earned wages of $50,000 working at a bank. The
individual received a $6,000 gift from a parent to go to Europe,
inherited $10,000 from a relative, and received $500 interest from a
pg. 3
, municipal bond. The individual has no dependents and has itemized
deductions of $11,000. What is this individual's tax liability for 2021?
A. $4,295
B. $4,355
C. $6,298
D. $6,529 ......ANSWER......A. $4,295
A married couple, ages 29 and 32, have normal vision and one
dependent daughter who is 14 years old. During 2021, one of the
individuals earned taxable wages of $54,000, and the other earned
$100,000. The couple also earned $400 of interest income from their
joint savings account, $1,200 interest from a municipal bond, and
incurred $23,590 of eligible itemized deductions. The couple will be
filing a joint return. What is this couple's federal income tax?
A. $19,943
B. $20,207
C. $20,275
D. $20,539 ......ANSWER......A. $19,943
Which scenario represents a realization of income?
A. A bank loan of $2,000
pg. 4
