WGU C239 Advanced tax Practice test Latest Version Already Passed

WGU C239 Advanced tax Practice test Latest Version Already Passed 1. Why would a taxpayer need to include IRS Form 8332, Release/Revocation of Claim to Exemption of Child by Custodial Parent, in their personal income tax return? A. To allow a noncustodial ex-spouse permission to take the child's dependency exemption, or to revoke same. B. To disallow an ex-spouse permission from taking child's dependency exemption because they only provided 10% of child's support. C. To disallow an ex-spouse permission from taking child's dependency exemption because they provided less than 50% of child's support. D. To allow a noncustodial ex-spouse permission to take the child's dependency exemption if they provide 90% of child's support. A. To allow a noncustodial ex-spouse permission to take the child's dependency exemption, or to revoke same. 1. What is the purpose of the Forms 1040 Schedule A, and 1040 Schedule C, respectively, for an individual taxpayer? A. To record profit or loss from a sole proprietorship, and itemized deductions B. To record dependency exemptions, and profit or loss from a sole proprietorship C. To record itemized deductions, and profit or loss from a sole proprietorship D. To record the standard deductions in lieu of itemized deductions, and profit or loss from a sole proprietorship C. To record itemized deductions, and profit or loss from a sole proprietorship 1. What is the purpose of the Form 1040 Schedule E (including both page 1 and 2 of Schedule E) for an individual taxpayer? A. To record profit or loss from a sole proprietorship, and K-1s received from S Corporations, Partnerships, and Estates. B. To record rental income & expenses, royalties, and K-1s received from S Corporations, Partnerships, and Estates. C. To record itemized deductions, and profit or loss from a sole proprietorship D. To record the profits but not losses of a sole proprietorship, and royalties. B. To record rental income & expenses, royalties, and K-1s received from S Corporations, Partnerships, and Estates. 1. In 2019, a single person operates a business as a sole proprietorship. The business sells hammers on the internet. The business has revenues of $550,000 and expenses of 350,000, which includes $90,000 of wages. The individual also has a part-time job and earns $20,000. The individuals average tax rate is 24%, and the corporate tax rate is 21%. If the business operates as a C corporation, what is the 2019 tax liability? A. $48,000 B. $42,000 C. $46,200 D. $40,000 B. $42,000 5. Form 2553, Election by a Small Business Corporation, is used for what purpose: A. To elect Sec. 179 depreciation. B. To elect to be treated as an S Corporation for Federal income tax purposes. C. To elect to undo a previous S Corporation election. D. To elect to be treated as a partnership for Federal income