WGU C239 PA Questions and Answers Already Passed

WGU C239 PA Questions and Answers Already Passed An individual has taxable income of $60,000. The first $20,000 is taxed at 20%, the next $20,000 is taxed at 20%, and all income above $40,000 is taxed at 20%.Which tax structure is being applied to the individual's taxable income? Base Regressive Progressive Proportional Proportional Which federal income tax structure imposes an increasing marginal tax rate as the tax base increases? Regressive tax Incremental tax Progressive tax Proportional tax Progressive What would a graph look like for Progressive, Proportional, Incremental, and Regressive tax structures? Progressive- ascending Proportional- flat line Incremental- stair-steps Regressive- descending What describes a gift tax? Tax on the retail sale of particular products Tax on the fair market value of wealth transfers Tax on the retail price of goods and services Tax on income earned by an individual Tax on the fair market value of wealth transfers What is a key element of an economy tax structure? Attracts and stimulates investment Helps ensure equality and ability to pay Assists in reducing unemployment and inflation Requires minimal compliance and administration costs Requires minimal compliance and administration costs Which objective of the federal tax law requires that a good tax system minimizes the compliance and administration costs? Equity Convenience Certainty Economy Economy Consider how the tax burden should be distributed across taxpayers Questions of Equity Means taxpayers should be able to determine when, where, and how much to pay Certainty A tax system should minimize compliance and administration costs Convenience Which partnership item would flow through to an individual's tax return? Capital gains Gross income Partnership exemptions Dividends received