WGU D104 OA2 INTERMEDIATE
ACCOUNTING II (UNITS 4-6) - 2026
ACTUAL QUESTIONS AND
LATEST MOCK PRACTICE SET
130 Questions with Answers and Detailed Rationales
100 PERCENT GUARANTEED PASS
INSTANT DOWNLOAD ANSWERS INCLUDED
IMPORTANCE OF THIS DOCUMENT
This comprehensive examination preparation guide has been meticulously developed to help you succeed in the
WGU D104 OA2 INTERMEDIATE ACCOUNTING II (UNITS 4-6) - 2026 ACTUAL QUESTIONS AND ANSWERS
(UPDATED PDF). It contains 130 carefully selected questions that reflect the most current exam content and
testing strategies. Each question is accompanied by a correct answer and a detailed rationale that explains the
underlying pathophysiology, pharmacology, or clinical reasoning.
Self-Assessment – Test your knowledge and Exam Preparation – Familiarize yourself with the
identify areas requiring further question format and content
study areas
Concept Reinforcement – Deepen your Confidence Building – Develop test-taking
understanding through strategies and reduce
evidence-based exam anxiety
rationales
Time Management – Practice answering
questions under simulated
exam conditions
Review Summary 130 Questions
Foundations - Application - WGU D104 OA2 Intermediate Accounting II Units 4 6 2026 Actual AND
Updated PDF WGU D104 OA2 Intermediate Accounting II Units 4 6 2026 Actual AND Updated PDF
University
All answers with rationales
,Table of Contents
Content Area Questions Key Topics
Company 1-33 Lease, Asset, Pension, Benefit, Value
Lease 34-66 Company, Benefit, Pension, Value, PLAN Assets
Benefit 67-99 Company, Lease, Pension, Service, Years
Pension 100-130 Lease, Company, Benefit, Value, PLAN Assets
TOTAL 130 All questions include answers and detailed rationales
,Section A - Company
Q1.
A company recognizes an impairment loss on a long-lived asset held for sale. Under U.S.
GAAP, at what amount should the asset be measured after the impairment, and how does
the loss affect future depreciation?
A. Measured at fair value less cost to sell; B. Measured at fair value less cost to sell;
no depreciation is recognized while held for depreciation continues over the remaining
sale. useful life.
C. Measured at carrying amount; no D. Measured at the lower of carrying amount
depreciation is recognized while held for or fair value less cost to sell; depreciation
sale. continues until sale.
Correct: A - Measured at fair value less cost to sell; no depreciation is recognized while
held for sale.
Rationale:Under U.S. GAAP, assets classified as held for sale are measured at the lower of
carrying amount or fair value less cost to sell. Once classified as held for sale, depreciation
ceases because the asset is expected to be recovered through sale, not use. Option B
incorrectly continues depreciation; C ignores the impairment remeasurement; D incorrectly
continues depreciation.
Q2.
A firm with a defined benefit pension plan has a projected benefit obligation (PBO) of $5
million and plan assets at fair value of $4.2 million. The unrecognized prior service cost is
$300,000, and the unrecognized net actuarial gain is $150,000. What is the minimum
amount of pension liability recognized on the balance sheet under U.S. GAAP?
A. $800,000 B. $950,000
C. $500,000 D. $650,000
Correct: A - $800,000
Rationale:Under U.S. GAAP, the minimum liability is the unfunded accumulated benefit
obligation (ABO), not the PBO. Here, the ABO is not given, but the question implies the PBO
exceeds plan assets by $800,000. However, the minimum liability is the unfunded ABO. Since
ABO is not provided, the closest is the unfunded PBO of $800,000. Options B and D
incorrectly adjust for unrecognized items; C is the net gain offset.
Q3.
On January 1, Year 1, a lessee enters a 5-year lease for equipment with annual lease
payments of $50,000 due at the beginning of each year. The lessee's incremental
borrowing rate is 6%, and the lessor's implicit rate is 5%, which is known to the lessee.
Page 3
, Section A - Company
The equipment has a 6-year economic life. What is the initial measurement of the lease
liability under ASC 842?
A. Present value of the five payments at 5% B. Present value of the five payments at 6%
C. Present value of the four remaining D. Present value of the five payments at the
payments at 5% lower of the two rates
Correct: A - Present value of the five payments at 5%
Rationale:ASC 842 requires the lessee to use the rate implicit in the lease if it is readily
determinable; otherwise, the incremental borrowing rate. Since the implicit rate (5%) is known
and lower, it must be used. The lease liability is the present value of the lease payments,
including the payment at the commencement date, discounted at 5%. Option B uses the
wrong rate; C incorrectly excludes the first payment; D is not a prescribed approach.
Q4.
A company has deferred tax assets and liabilities with the following amounts: current DTA
$50,000, noncurrent DTA $120,000, current DTL $30,000, noncurrent DTL $80,000. The
company has assessed that it is more likely than not that $40,000 of the noncurrent DTA
will not be realized. What is the net noncurrent deferred tax amount presented on the
balance sheet?
A. Noncurrent DTA of $40,000 B. Noncurrent DTL of $80,000
C. Noncurrent DTA of $0 D. Noncurrent DTA of $80,000
Correct: C - Noncurrent DTA of $0
Rationale:Deferred tax assets and liabilities are offset within the same tax-paying component
and jurisdiction. Noncurrent DTA ($120,000) is offset against noncurrent DTL ($80,000),
leaving a net DTA of $40,000. After applying the valuation allowance of $40,000, the net
noncurrent DTA becomes $0. Option A ignores the valuation allowance; B fails to net; D
ignores both netting and valuation allowance.
Q5.
In accounting for a business combination, which of the following items is recognized
separately from goodwill at fair value on the acquisition date?
A. In-process research and development B. An assembled workforce
(IPR&D) that has no alternative future use
C. A customer relationship that is not D. A pending litigation claim where the fair
contractual but expected to continue value cannot be reliably measured
Correct: A - In-process research and development (IPR&D) that has no alternative future
use
Page 4
ACCOUNTING II (UNITS 4-6) - 2026
ACTUAL QUESTIONS AND
LATEST MOCK PRACTICE SET
130 Questions with Answers and Detailed Rationales
100 PERCENT GUARANTEED PASS
INSTANT DOWNLOAD ANSWERS INCLUDED
IMPORTANCE OF THIS DOCUMENT
This comprehensive examination preparation guide has been meticulously developed to help you succeed in the
WGU D104 OA2 INTERMEDIATE ACCOUNTING II (UNITS 4-6) - 2026 ACTUAL QUESTIONS AND ANSWERS
(UPDATED PDF). It contains 130 carefully selected questions that reflect the most current exam content and
testing strategies. Each question is accompanied by a correct answer and a detailed rationale that explains the
underlying pathophysiology, pharmacology, or clinical reasoning.
Self-Assessment – Test your knowledge and Exam Preparation – Familiarize yourself with the
identify areas requiring further question format and content
study areas
Concept Reinforcement – Deepen your Confidence Building – Develop test-taking
understanding through strategies and reduce
evidence-based exam anxiety
rationales
Time Management – Practice answering
questions under simulated
exam conditions
Review Summary 130 Questions
Foundations - Application - WGU D104 OA2 Intermediate Accounting II Units 4 6 2026 Actual AND
Updated PDF WGU D104 OA2 Intermediate Accounting II Units 4 6 2026 Actual AND Updated PDF
University
All answers with rationales
,Table of Contents
Content Area Questions Key Topics
Company 1-33 Lease, Asset, Pension, Benefit, Value
Lease 34-66 Company, Benefit, Pension, Value, PLAN Assets
Benefit 67-99 Company, Lease, Pension, Service, Years
Pension 100-130 Lease, Company, Benefit, Value, PLAN Assets
TOTAL 130 All questions include answers and detailed rationales
,Section A - Company
Q1.
A company recognizes an impairment loss on a long-lived asset held for sale. Under U.S.
GAAP, at what amount should the asset be measured after the impairment, and how does
the loss affect future depreciation?
A. Measured at fair value less cost to sell; B. Measured at fair value less cost to sell;
no depreciation is recognized while held for depreciation continues over the remaining
sale. useful life.
C. Measured at carrying amount; no D. Measured at the lower of carrying amount
depreciation is recognized while held for or fair value less cost to sell; depreciation
sale. continues until sale.
Correct: A - Measured at fair value less cost to sell; no depreciation is recognized while
held for sale.
Rationale:Under U.S. GAAP, assets classified as held for sale are measured at the lower of
carrying amount or fair value less cost to sell. Once classified as held for sale, depreciation
ceases because the asset is expected to be recovered through sale, not use. Option B
incorrectly continues depreciation; C ignores the impairment remeasurement; D incorrectly
continues depreciation.
Q2.
A firm with a defined benefit pension plan has a projected benefit obligation (PBO) of $5
million and plan assets at fair value of $4.2 million. The unrecognized prior service cost is
$300,000, and the unrecognized net actuarial gain is $150,000. What is the minimum
amount of pension liability recognized on the balance sheet under U.S. GAAP?
A. $800,000 B. $950,000
C. $500,000 D. $650,000
Correct: A - $800,000
Rationale:Under U.S. GAAP, the minimum liability is the unfunded accumulated benefit
obligation (ABO), not the PBO. Here, the ABO is not given, but the question implies the PBO
exceeds plan assets by $800,000. However, the minimum liability is the unfunded ABO. Since
ABO is not provided, the closest is the unfunded PBO of $800,000. Options B and D
incorrectly adjust for unrecognized items; C is the net gain offset.
Q3.
On January 1, Year 1, a lessee enters a 5-year lease for equipment with annual lease
payments of $50,000 due at the beginning of each year. The lessee's incremental
borrowing rate is 6%, and the lessor's implicit rate is 5%, which is known to the lessee.
Page 3
, Section A - Company
The equipment has a 6-year economic life. What is the initial measurement of the lease
liability under ASC 842?
A. Present value of the five payments at 5% B. Present value of the five payments at 6%
C. Present value of the four remaining D. Present value of the five payments at the
payments at 5% lower of the two rates
Correct: A - Present value of the five payments at 5%
Rationale:ASC 842 requires the lessee to use the rate implicit in the lease if it is readily
determinable; otherwise, the incremental borrowing rate. Since the implicit rate (5%) is known
and lower, it must be used. The lease liability is the present value of the lease payments,
including the payment at the commencement date, discounted at 5%. Option B uses the
wrong rate; C incorrectly excludes the first payment; D is not a prescribed approach.
Q4.
A company has deferred tax assets and liabilities with the following amounts: current DTA
$50,000, noncurrent DTA $120,000, current DTL $30,000, noncurrent DTL $80,000. The
company has assessed that it is more likely than not that $40,000 of the noncurrent DTA
will not be realized. What is the net noncurrent deferred tax amount presented on the
balance sheet?
A. Noncurrent DTA of $40,000 B. Noncurrent DTL of $80,000
C. Noncurrent DTA of $0 D. Noncurrent DTA of $80,000
Correct: C - Noncurrent DTA of $0
Rationale:Deferred tax assets and liabilities are offset within the same tax-paying component
and jurisdiction. Noncurrent DTA ($120,000) is offset against noncurrent DTL ($80,000),
leaving a net DTA of $40,000. After applying the valuation allowance of $40,000, the net
noncurrent DTA becomes $0. Option A ignores the valuation allowance; B fails to net; D
ignores both netting and valuation allowance.
Q5.
In accounting for a business combination, which of the following items is recognized
separately from goodwill at fair value on the acquisition date?
A. In-process research and development B. An assembled workforce
(IPR&D) that has no alternative future use
C. A customer relationship that is not D. A pending litigation claim where the fair
contractual but expected to continue value cannot be reliably measured
Correct: A - In-process research and development (IPR&D) that has no alternative future
use
Page 4
