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WGU - C237 - TAXATION 1 2025\ 2026
BRAND NEW QUESTIONS WITH
ANSWERS| ACE YOUR GRADES!
1. A schedule of progressive tax rates and the income ranges to
which the rates apply that taxpayers may use to compute their
gross tax liability. (Ch 4-10) - correct answer -Tax Rate
Schedule
2. IRS-provided tables that specify the federal income tax liability
for individuals with taxable income within a specific range and
differ by filing status and reflect tax rates that increase with
taxable income. (Ch 4-10) - correct answer -Tax Tables
3. An agreement negotiated between countries that describe the
tax treatment of entities subject to tax in both countries. (Ch 2-
14) - correct answer -Tax Treaties
4. A fixed period in which a business reports income and
deduction, generally 1 year. (Ch 9-13) - correct answer -Tax
Year
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5. An individual's compensation that is used to determine tax
liability. (Ch 4-2) - correct answer -Taxable Income
6. A type of memorandum ruling issued by the IRS national office,
requested by an IRS agent, and generated for a complete
transaction. (Ch 2-16) - correct answer -Technical Advice
7. A type of regulation that is issued with a limited life, generally 3
years. (Ch 2-15) - correct answer -Temporary
8. The tax on the AMT tax base under the alternative minimum
tax system. (Ch 8-23) - correct answer -Tentative Minimum Tax
9. People or organizations that facilitate the transfer of property
between taxpayers in a like-kind exchange. (Ch 11-25) - correct
answer -Third Party Intermediaries
10. A type of tax service arranged by subject where many types
of relevant supporting documents may be found. (Ch 2-19) -
correct answer -Topical
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11. A profit-motivated activity characterized by a sustained,
continuous, high level of individual involvement or effort. (Ch 6-
2) - correct answer -Trade or Business
12. A type of tax levied on the transfer of wealth from one
taxpayer to another. (Estate, Gift) (Ch 1-13) - correct answer -
Transfer
13. Expenditures incurred while "away from home overnight,"
including the cost of transportation, meals, lodging, and
incidental expenses. (Ch 9-9) - correct answer -Travel
Expenses
14. The penalty that applies when the taxpayer fails to
adequately prepay their tax liability. (Ch 8-35) - correct answer
-Underpayment Penalty
15. Income from property that accrues as time passes without
effort on the part of the owner of the property. (Ch 5-10) -
correct answer -Unearned Income
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16. A type of tax intended to provide temporary benefits for
individuals terminated from their jobs without cause. (Ch 1-13) -
correct answer -Unemployment
17. Rules that specify that inventories must be accounted for
using full absorption rules to allocate the indirect costs of
productive activities to inventory. (Ch 9-19) - correct answer -
Uniform Cost Capitalization Rules (UNICAP)
18. A type of 1231 gain derived from the sale of real estate held
by a noncorporate taxpayer for more than one year in a trade
or business or as rental property attributable to tax depreciation
deducted at ordinary tax rates. (Ch 7-2) - correct answer -
Unrecaptured 1250 Gain
19. The first level of appeals courts after the trial-level courts.
(Ch 2-7) - correct answer -US Circuit Court of Appeals
WGU - C237 - TAXATION 1 2025\ 2026
BRAND NEW QUESTIONS WITH
ANSWERS| ACE YOUR GRADES!
1. A schedule of progressive tax rates and the income ranges to
which the rates apply that taxpayers may use to compute their
gross tax liability. (Ch 4-10) - correct answer -Tax Rate
Schedule
2. IRS-provided tables that specify the federal income tax liability
for individuals with taxable income within a specific range and
differ by filing status and reflect tax rates that increase with
taxable income. (Ch 4-10) - correct answer -Tax Tables
3. An agreement negotiated between countries that describe the
tax treatment of entities subject to tax in both countries. (Ch 2-
14) - correct answer -Tax Treaties
4. A fixed period in which a business reports income and
deduction, generally 1 year. (Ch 9-13) - correct answer -Tax
Year
, Page | 2
5. An individual's compensation that is used to determine tax
liability. (Ch 4-2) - correct answer -Taxable Income
6. A type of memorandum ruling issued by the IRS national office,
requested by an IRS agent, and generated for a complete
transaction. (Ch 2-16) - correct answer -Technical Advice
7. A type of regulation that is issued with a limited life, generally 3
years. (Ch 2-15) - correct answer -Temporary
8. The tax on the AMT tax base under the alternative minimum
tax system. (Ch 8-23) - correct answer -Tentative Minimum Tax
9. People or organizations that facilitate the transfer of property
between taxpayers in a like-kind exchange. (Ch 11-25) - correct
answer -Third Party Intermediaries
10. A type of tax service arranged by subject where many types
of relevant supporting documents may be found. (Ch 2-19) -
correct answer -Topical
, Page | 3
11. A profit-motivated activity characterized by a sustained,
continuous, high level of individual involvement or effort. (Ch 6-
2) - correct answer -Trade or Business
12. A type of tax levied on the transfer of wealth from one
taxpayer to another. (Estate, Gift) (Ch 1-13) - correct answer -
Transfer
13. Expenditures incurred while "away from home overnight,"
including the cost of transportation, meals, lodging, and
incidental expenses. (Ch 9-9) - correct answer -Travel
Expenses
14. The penalty that applies when the taxpayer fails to
adequately prepay their tax liability. (Ch 8-35) - correct answer
-Underpayment Penalty
15. Income from property that accrues as time passes without
effort on the part of the owner of the property. (Ch 5-10) -
correct answer -Unearned Income
, Page | 4
16. A type of tax intended to provide temporary benefits for
individuals terminated from their jobs without cause. (Ch 1-13) -
correct answer -Unemployment
17. Rules that specify that inventories must be accounted for
using full absorption rules to allocate the indirect costs of
productive activities to inventory. (Ch 9-19) - correct answer -
Uniform Cost Capitalization Rules (UNICAP)
18. A type of 1231 gain derived from the sale of real estate held
by a noncorporate taxpayer for more than one year in a trade
or business or as rental property attributable to tax depreciation
deducted at ordinary tax rates. (Ch 7-2) - correct answer -
Unrecaptured 1250 Gain
19. The first level of appeals courts after the trial-level courts.
(Ch 2-7) - correct answer -US Circuit Court of Appeals
