WGU C237 TAXATION I (OA) EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+
Number of days that are initially given to an audited individual or business to either request a
conference with an appeals officer or agree to the proposed adjustment. (Ch 2-6) - (answer)30
Number of days that are given to an audited individual or business after the appeals conference to either
pay the proposed deficiency or file a petition in the US Tax Court to hear the case. (Ch 2-6) - (answer)90
A regulation that allows prepaid business expenses to be currently deducted when the contract does not
extend beyond a specific numbers of months and the contract period does not extend beyond the end of
the tax year following the year of the payment. (Ch 6-15) - (answer)12 Month Rule
Depreciable or real property used in a taxpayers trade or business owned for more than one year. (Ch
11-8) - (answer)1231 Assets
A tax rule requiring taxpayers to treat current year net (Ch 11-18) - (answer)1231 Look Back Rule
Tangible personal property and intangible property subject to cost recovery deductions. (Ch 11-10) -
(answer)1245 Property
Real property subject to cost recovery deductions. (Ch 11-14) - (answer)1250 Property
The portion of a corporate taxpayer's gain on real property that is converted from 1231 gain to ordinary
income. (Ch 11-14) - (answer)291 Depreciation Recapture
A change to taxable income associated with a change in accounting methods. (Ch 9-30) - (answer)481
Adjustment
A married taxpayer who lives apart from the spouse for the last 6 months of the year, who files a tax
return separate from the spouse, and who maintains a household for a qualifying child. (Ch 4-24) -
(answer)Abandoned Spouse
,WGU C237 TAXATION I (OA) EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+
Early receipt of life insurance proceeds that are not taxable un certain circumstances, such as the
taxpayer is medically certified with an illness that is expected to cause death within 24 months. (Ch 5-28)
- (answer)Accelerated Death Benefits
An Employer's reimbursement plan under which employees must submit documentation supporting
expenses to receive reimbursement and reimbursements are limited to legitimate business expenses.
(Ch 5-23) - (answer)Accountable Plan
The procedure for determining the taxable year in which a business recognizes a particular item of
income or deduction, thereby dictating the timing of when a taxpayer reports income and deductions.
(Ch 9-14) - (answer)Accounting Methods
A fixed period of time win which a business reports income and deductions. (Ch 9-13) -
(answer)Accounting Period
A method of accounting that generally recognizes income in the period earned and recognizes
deductions in the period that liabilities are incurred. (Ch 5-6) - (answer)Accrual Method
A tax assessed on corporations that retain earning without a business reason to do so. (Ch 15-3) -
(answer)Accumulated Earnings Tax
Issued after the IRS loses a trial-level or circuit court case where the IRS doesn't necessarily agree with
the court's ruling, but chooses to no longer litigate the issue. (Ch 2-17) - (answer)Acquiescence
An IRS pronouncement that explains the background reasoning behind an IRS acquiescence or
nonacquiescence . (Ch 2-17) - (answer)Action on Decision
A type of tax based on the value of property. (Ch 1-15) - (answer)Ad Valorem
,WGU C237 TAXATION I (OA) EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+
A tax imposed at a rate of .9% for salary or wages or net self-employment earning in excess of $200,000.
(Ch 8-14) - (answer)Additional Medicare Tax
An asset's carrying value for tax purposes at a given point in time, measured as the initial basis plus
capital improvements less depreciation or amortization. (Ch 10-1,11-5) - (answer)Adjusted Basis
Gross income less specific "above the line" deductions. It is an important reference point in the income
tax formula. (Ch 4-2) - (answer)Adjusted Gross Income
A taxpayer's before-tax rate of return on an investment minus the taxes paid on the income from the
investment. (Ch 3-3) - (answer)After Tax Rate of Return
A support payment of cash made to a former spouse. (Ch 5-14) - (answer)Alimony
Requires that income or expenses are recognized when all events have occurred that determine or fix
the right to receive the income or liability to make the payments and the amount of the income or
expense can be determined with reasonable accuracy. (Ch 9-21) - (answer)All Events Test
A concept that says: Gross income means all income from whatever source derived. (Ch 4-2) -
(answer)All Inclusive Income
Method used for financial reporting purposes; under this method, bad debt expense is based on an
estimate of the amount of the bad debts in AR at YE. (Ch 9-25) - (answer)Allowance Method
A tax that is designed to require taxpayers to pay some specific level of tax even when they have low or
no regular taxable income as a result of certain tax breaks in the tax code. (Ch 4-11) - (answer)Alternative
Minimum Tax
Adjustments, either positive or negative, to regular taxable income to arrive at the alternative minimum
tax base. (Ch 8-9) - (answer)Alternative Minimum Tax Adjustments
, WGU C237 TAXATION I (OA) EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+
A system that was designed to ensure that taxpayers generating economic income pay some minimum
amount of income tax each year. (Ch 8-8) - (answer)Alternative Minimum Tax System
Alternative minimum taxable income minus the alternative minimum tax exemption. (Ch 8-8) -
(answer)Alternative Minimum Tax Base
The method of recovering the cost of intangible assets over a specific time period. (Ch 10-1) -
(answer)Amortization
The value of everything received by the seller in a transaction less selling costs. (Ch 11-2) -
(answer)Amount Realized
Step 4 of tax research. (Ch 2-18) - (answer)Analyze Tax Authorities
A stream of equal payments over time. (Ch 5-11) - (answer)Annuity
A type of tax service arranged by code section where many types of relevant supporting documents may
be found. (Ch 2-18) - (answer)Annotated
A type of transaction among unrelated taxpayers in which each transacting party negotiates for his or
her own benefit. (Ch 3-12) - (answer)Arms Length
Price in transactions among unrelated taxpayers, where each transacting party negotiates for his or her
own benefit. (Ch 9-4) - (answer)Arms Length Amount
A judicial doctrine in which earned income is taxed to the taxpayer providing the service, and that
income from property is taxed to the individual who owns the property when the income accrues. (Ch 3-
12, 5-8) - (answer)Assignment of Income Doctrine
QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+
Number of days that are initially given to an audited individual or business to either request a
conference with an appeals officer or agree to the proposed adjustment. (Ch 2-6) - (answer)30
Number of days that are given to an audited individual or business after the appeals conference to either
pay the proposed deficiency or file a petition in the US Tax Court to hear the case. (Ch 2-6) - (answer)90
A regulation that allows prepaid business expenses to be currently deducted when the contract does not
extend beyond a specific numbers of months and the contract period does not extend beyond the end of
the tax year following the year of the payment. (Ch 6-15) - (answer)12 Month Rule
Depreciable or real property used in a taxpayers trade or business owned for more than one year. (Ch
11-8) - (answer)1231 Assets
A tax rule requiring taxpayers to treat current year net (Ch 11-18) - (answer)1231 Look Back Rule
Tangible personal property and intangible property subject to cost recovery deductions. (Ch 11-10) -
(answer)1245 Property
Real property subject to cost recovery deductions. (Ch 11-14) - (answer)1250 Property
The portion of a corporate taxpayer's gain on real property that is converted from 1231 gain to ordinary
income. (Ch 11-14) - (answer)291 Depreciation Recapture
A change to taxable income associated with a change in accounting methods. (Ch 9-30) - (answer)481
Adjustment
A married taxpayer who lives apart from the spouse for the last 6 months of the year, who files a tax
return separate from the spouse, and who maintains a household for a qualifying child. (Ch 4-24) -
(answer)Abandoned Spouse
,WGU C237 TAXATION I (OA) EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+
Early receipt of life insurance proceeds that are not taxable un certain circumstances, such as the
taxpayer is medically certified with an illness that is expected to cause death within 24 months. (Ch 5-28)
- (answer)Accelerated Death Benefits
An Employer's reimbursement plan under which employees must submit documentation supporting
expenses to receive reimbursement and reimbursements are limited to legitimate business expenses.
(Ch 5-23) - (answer)Accountable Plan
The procedure for determining the taxable year in which a business recognizes a particular item of
income or deduction, thereby dictating the timing of when a taxpayer reports income and deductions.
(Ch 9-14) - (answer)Accounting Methods
A fixed period of time win which a business reports income and deductions. (Ch 9-13) -
(answer)Accounting Period
A method of accounting that generally recognizes income in the period earned and recognizes
deductions in the period that liabilities are incurred. (Ch 5-6) - (answer)Accrual Method
A tax assessed on corporations that retain earning without a business reason to do so. (Ch 15-3) -
(answer)Accumulated Earnings Tax
Issued after the IRS loses a trial-level or circuit court case where the IRS doesn't necessarily agree with
the court's ruling, but chooses to no longer litigate the issue. (Ch 2-17) - (answer)Acquiescence
An IRS pronouncement that explains the background reasoning behind an IRS acquiescence or
nonacquiescence . (Ch 2-17) - (answer)Action on Decision
A type of tax based on the value of property. (Ch 1-15) - (answer)Ad Valorem
,WGU C237 TAXATION I (OA) EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+
A tax imposed at a rate of .9% for salary or wages or net self-employment earning in excess of $200,000.
(Ch 8-14) - (answer)Additional Medicare Tax
An asset's carrying value for tax purposes at a given point in time, measured as the initial basis plus
capital improvements less depreciation or amortization. (Ch 10-1,11-5) - (answer)Adjusted Basis
Gross income less specific "above the line" deductions. It is an important reference point in the income
tax formula. (Ch 4-2) - (answer)Adjusted Gross Income
A taxpayer's before-tax rate of return on an investment minus the taxes paid on the income from the
investment. (Ch 3-3) - (answer)After Tax Rate of Return
A support payment of cash made to a former spouse. (Ch 5-14) - (answer)Alimony
Requires that income or expenses are recognized when all events have occurred that determine or fix
the right to receive the income or liability to make the payments and the amount of the income or
expense can be determined with reasonable accuracy. (Ch 9-21) - (answer)All Events Test
A concept that says: Gross income means all income from whatever source derived. (Ch 4-2) -
(answer)All Inclusive Income
Method used for financial reporting purposes; under this method, bad debt expense is based on an
estimate of the amount of the bad debts in AR at YE. (Ch 9-25) - (answer)Allowance Method
A tax that is designed to require taxpayers to pay some specific level of tax even when they have low or
no regular taxable income as a result of certain tax breaks in the tax code. (Ch 4-11) - (answer)Alternative
Minimum Tax
Adjustments, either positive or negative, to regular taxable income to arrive at the alternative minimum
tax base. (Ch 8-9) - (answer)Alternative Minimum Tax Adjustments
, WGU C237 TAXATION I (OA) EXAM WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED ANSWERS LATEST
ALREADY GRADED A+
A system that was designed to ensure that taxpayers generating economic income pay some minimum
amount of income tax each year. (Ch 8-8) - (answer)Alternative Minimum Tax System
Alternative minimum taxable income minus the alternative minimum tax exemption. (Ch 8-8) -
(answer)Alternative Minimum Tax Base
The method of recovering the cost of intangible assets over a specific time period. (Ch 10-1) -
(answer)Amortization
The value of everything received by the seller in a transaction less selling costs. (Ch 11-2) -
(answer)Amount Realized
Step 4 of tax research. (Ch 2-18) - (answer)Analyze Tax Authorities
A stream of equal payments over time. (Ch 5-11) - (answer)Annuity
A type of tax service arranged by code section where many types of relevant supporting documents may
be found. (Ch 2-18) - (answer)Annotated
A type of transaction among unrelated taxpayers in which each transacting party negotiates for his or
her own benefit. (Ch 3-12) - (answer)Arms Length
Price in transactions among unrelated taxpayers, where each transacting party negotiates for his or her
own benefit. (Ch 9-4) - (answer)Arms Length Amount
A judicial doctrine in which earned income is taxed to the taxpayer providing the service, and that
income from property is taxed to the individual who owns the property when the income accrues. (Ch 3-
12, 5-8) - (answer)Assignment of Income Doctrine
