WGU C237 Taxation I UPDATED ACTUAL Exam Questions and CORRECT Answers

WGU C237 Taxation I UPDATED ACTUAL
Exam Questions and CORRECT Answers
Describe the history of taxation in the US - CORRECT ANSWER - unconstitutional 1895



Sources of Tax Law-Legislative Branch - CORRECT ANSWER - - Internal Revenue
Code (Top)
- Congressional Committee Reports


Describe the criteria of an equitable tax structure Equity - CORRECT ANSWER - Is it
Fair


Simplicity - CORRECT ANSWER - understandability



Economy - CORRECT ANSWER - minimal compliance and administrative costs


-

Convenience - CORRECT ANSWER - no burden of records and compliance



Certainty - CORRECT ANSWER - Stability and certainty of amount of taxes



Regressive - CORRECT ANSWER - decreases as tax base increases



Proportional - CORRECT ANSWER - flat tax



Progressive - CORRECT ANSWER - tax increases as tax base increases



Gross Income - CORRECT ANSWER - Total income - Exclusions

, Taxable income - CORRECT ANSWER - Gross income-Deductions-Exemptions



Income before tax credits - CORRECT ANSWER - Taxable income x tax rate



Total tax liability - CORRECT ANSWER - Income before tax credits-tax credits



balance due or refund - CORRECT ANSWER - total tax liability - Prepayments



Distinguish between various types of taxes - CORRECT ANSWER - 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 - CORRECT
ANSWER - -Tax paying entities
Individuals
C Corps
-Flow through Entities
sole proprietorship
Partnerships
S Corps
LLC