(Top QUALITY 2024/2025 EXAM REVIEW) WGU C239 PA, Top Exam Questions and answers, 100% Accurate, GRADED A+

WGU C239 PA, Top Exam Questions and answers, 100% Accurate, GRADED A+ 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 deduction - -Capital Gains An Eleventh Circuit client who files in the U.S. Court of Federal Claims wants to know whether to include the terms of multiple options to renew a sale-leaseback to calculate a deduction. What is the authoritative reference? A Second Circuit case which used disjunctive analysis A tax court decision which used economic substance An Eleventh Circuit Case which analyzed sale-leaseback transactions that generate tax deductions A U.S. Court of Federal Claims case which analyzed sale-leaseback transactions for operating equipment - -A U.S. Court of Federal Claims case which analyzed sale-leaseback transactions for operating equipment Which tax rate calculation is an appropriate step in tax planning strategy to reduce tax? The average tax rate, because it represents the percent of tax on each dollar The tax-exempt tax rate, because effective tax planning utilizes tax exempt bonds The effective tax rate, because economic income is less broad than taxable income The marginal tax rate, because it represents the tax applicable to the next taxable dollar - -The marginal tax rate, because it represents the tax applicable to the next taxable dollar Where is a corporation's non-business income allocated when computing the corporation's state taxable income? To multiple states per the functional test To one state per the transaction test To the state of the corporate headquarters of the payer To each state where the income is earned - -To the state of the corporate headquarters of the payer What is a key operating element of doing business as an S corporation? Fiscal year ends can be chosen without establishing a business purpose. Corporate profits are taxed at the shareholders level in the year earned. Shareholders are not subject to the at-risk or passive activity limitations. Nontaxable fringe benefits are available to S corporation employee shareholders. - -Corporate profits are taxed at the shareholders level in the year ea