WGU C239 Exam Problems | 110 Questions with 100% Correct Answers | Verified | Latest Update | 26 Pages

Angel has an AGI of $85,000 without considering the sale of a nondepreciable asset for $35,000. The asset was acquired five years ago and has an adjusted basis of $50,000. She has no other sales or exchanges. Determine Angel's AGI for the following independent situations when the asset is: A capital asset § 1231 asset - 82,000 - 70,000 A owns invest land with an adjusted bases of 50000 FMV of 70000 subject to a mortgage of 15000. B owns investment land with an adjusted basis of 60000 FMV of 65000 subject to a mortgage of 10000, A and B exchange real estate investments What are there gain and basis - A Gain-20000 Recognized-5000 Basis-50000 B Gain -5000 Recognized -0 Basis -65000 What is the default tax classification for a LLC? - Partnership, Form 1065MacDonald Consulting, LLC is expected to earn $300,000 in annual profits. The LLC is owned equally by four people who have other substantial income and will not need their profits for many years. What is the appropriate tax-minimizing entity classification decision for this business? - C Corporation What is optimal tax planning? - Maximizing after-tax cash flows A Personal Service Corporation (PSC) reports taxable income of $300,000. A Personal Service Corporation is taxed at 35%. What is the PSC's regular tax liability? - $105,000 Beginning in 2013, higher-income taxpayers' itemized deductions are reduced. What is the maximum percentage higher-income taxpayers' itemized deductions are reduced - 80% Art, a sole proprietor operates Cherry Farms. Which schedule should he use to individually report the profit or loss from farming? - Form 1040 Schedule F, Profit or Loss From Farming