WGU C239 COMPREHENSIVE EXAMS 2026-2027
QUESTIONS AND ANSWERS RATED A+
✔✔In 2018, a company is considering alternative organizational forms. The gross
business earnings are $100,000. The owner is single and has $3,000 of income from
other sources, itemized deductions of $11,000, and a standard deduction of $12,000.
Compensation for services is $50,000. Business charitable contributions are $4,000.
The owner's dividends from the corporation are $15,000.
What will be the individual's adjusted gross income (AGI) if the business is operated as
a C Corporation?
$53,000
$57,000
$68,000
$72,000 - ✔✔$68,000
Compensation for services 50K
Dividends from corp 15K
other income source 3K
✔✔An individual owns 50% of the stock in an S corporation, while the individual's
spouse owns 30% of the stock. The tax year is the calendar year. The corporation
reports $44,000 of ordinary taxable income and pays no corporate income tax. The
individual's standard deduction is $12,000. The individual has a 12% marginal tax rate
for all of the income. Ignore any possible effect of a QBI deduction.
What is the amount of tax the individual must pay if income taxes are filed separately
rather than jointly?
$672
$1,200
$10,000
$11,200 - ✔✔$1,200
✔✔Which tax rate informs taxpayers the amount of tax they will pay when earning the
next dollar?
A. Marginal
B. Statutory
C. Average
D. Effective - ✔✔A. Marginal
✔✔An individual owns 40% of the stock in an S Corporation, and the individual's spouse
owns 30% of the stock.
The tax year is the calendar year.
, The corporation reports $104,000 of ordinary taxable income in 2021 and pays no
corporate income tax.
Ignore any possible effect of a qualified business income (QBI) deduction.
What is the amount of tax this individual must pay if income taxes are filed separately
rather than jointly?
A. $1,781
B. $2,663
C. $3,287
D. $3,416 - ✔✔C. $3,287
✔✔Corporation K, a subchapter of Corporation A, has $1,200,000 of NI for 2021.
Corporation K distributed $500,000 in dividends and paid $200,000 in estimated tax
payments.
What is Corporation K's 2021 federal tax liability?
A. -$53,000
B. $52,000
C. $147,000
D. $252,000 - ✔✔D.
✔✔In 2018, a company is considering alternative organizational forms.
The business has net revenue of $110,000 and expenses of $30,000, not including
compensation for charitable contributions.
The owner is single and has $3,000 of personal income from other sources and
itemized deductions of $11,000.
The owner receives compensation for services of $50,000 from the company.
Business charitable contributions are $4,000.
What is this corporation's tax liability if operated as a C Corporation?
A. $3,150
B. $5,460
C. $6,300
D. $16,800 - ✔✔B. $5,460
✔✔An individual owns 45% of a partnership.
The partnership sustained total operating losses of $45,000 in the current tax year, and
the basis in the partnership is adequate to sustain the loss.
What is the amount of this individual's recognized loss for the current tax year?
A. $0
B. $20,250
C. $29,250
D. $45,000 - ✔✔B.
✔✔An individual is operating a business as a sole proprietorship and has revenue of
$100,000 and expenses of $50,000 in a given year.
The individual also earns $5,000 from an outside part-time job.
What is this individual's self-employment tax liability?
QUESTIONS AND ANSWERS RATED A+
✔✔In 2018, a company is considering alternative organizational forms. The gross
business earnings are $100,000. The owner is single and has $3,000 of income from
other sources, itemized deductions of $11,000, and a standard deduction of $12,000.
Compensation for services is $50,000. Business charitable contributions are $4,000.
The owner's dividends from the corporation are $15,000.
What will be the individual's adjusted gross income (AGI) if the business is operated as
a C Corporation?
$53,000
$57,000
$68,000
$72,000 - ✔✔$68,000
Compensation for services 50K
Dividends from corp 15K
other income source 3K
✔✔An individual owns 50% of the stock in an S corporation, while the individual's
spouse owns 30% of the stock. The tax year is the calendar year. The corporation
reports $44,000 of ordinary taxable income and pays no corporate income tax. The
individual's standard deduction is $12,000. The individual has a 12% marginal tax rate
for all of the income. Ignore any possible effect of a QBI deduction.
What is the amount of tax the individual must pay if income taxes are filed separately
rather than jointly?
$672
$1,200
$10,000
$11,200 - ✔✔$1,200
✔✔Which tax rate informs taxpayers the amount of tax they will pay when earning the
next dollar?
A. Marginal
B. Statutory
C. Average
D. Effective - ✔✔A. Marginal
✔✔An individual owns 40% of the stock in an S Corporation, and the individual's spouse
owns 30% of the stock.
The tax year is the calendar year.
, The corporation reports $104,000 of ordinary taxable income in 2021 and pays no
corporate income tax.
Ignore any possible effect of a qualified business income (QBI) deduction.
What is the amount of tax this individual must pay if income taxes are filed separately
rather than jointly?
A. $1,781
B. $2,663
C. $3,287
D. $3,416 - ✔✔C. $3,287
✔✔Corporation K, a subchapter of Corporation A, has $1,200,000 of NI for 2021.
Corporation K distributed $500,000 in dividends and paid $200,000 in estimated tax
payments.
What is Corporation K's 2021 federal tax liability?
A. -$53,000
B. $52,000
C. $147,000
D. $252,000 - ✔✔D.
✔✔In 2018, a company is considering alternative organizational forms.
The business has net revenue of $110,000 and expenses of $30,000, not including
compensation for charitable contributions.
The owner is single and has $3,000 of personal income from other sources and
itemized deductions of $11,000.
The owner receives compensation for services of $50,000 from the company.
Business charitable contributions are $4,000.
What is this corporation's tax liability if operated as a C Corporation?
A. $3,150
B. $5,460
C. $6,300
D. $16,800 - ✔✔B. $5,460
✔✔An individual owns 45% of a partnership.
The partnership sustained total operating losses of $45,000 in the current tax year, and
the basis in the partnership is adequate to sustain the loss.
What is the amount of this individual's recognized loss for the current tax year?
A. $0
B. $20,250
C. $29,250
D. $45,000 - ✔✔B.
✔✔An individual is operating a business as a sole proprietorship and has revenue of
$100,000 and expenses of $50,000 in a given year.
The individual also earns $5,000 from an outside part-time job.
What is this individual's self-employment tax liability?
