WGU C239 Pre-Assessment Test Questions With 100% Correct Answers Latest Updated 2024/2025 (VERIFIED AND GUARANTEED SUCCESS)

WGU C239 Pre-Assessment Test Questions With 100% Correct Answers Latest Updated 2024/2025 (VERIFIED AND GUARANTEED SUCCESS) 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? WGU C239 Pre-Assessment Test Questions With 100% Correct Answers Latest Updated 2024/2025 (VERIFIED AND GUARANTEED SUCCESS) [Date] 2 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 [Date] 3 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? [Date] 4 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 earned. [Date] 5 Which activity of the tax advisor exemplifies the nature of tax compliance as a closed situation? Shaping the facts that detail the transaction Planning for the facts that have not yet occurred Considering the facts that have already occurred Communicating the facts that detail the transaction - ️️Considering the facts that have already occurred What is a basic type of tax service? Topical Audited Proprietary Strategized - ️️Topical The other type of service is Annotated. A tax service arranged by the IRC section - ️️Annotated Tax Service Commerce Clearing House's (CCH) Standard Federal Tax Reporter Research Institute of America's (RIA) United States Tax Reporter - ️️examples of annotated tax service EMAIL ME: EMAIL ME: [Date] 6 Topical arrangement of services such as taxable forms of income, tax exempt income, and trade or business expense - ️️Topical Tax Service BNA's Tax Management Portfolios CCH's Tax Research Consultant RIA's Federal Tax Coordinator - ️️examples of topical tax services understand facts identify issues locate relevant authorities analyze tax authorities document and communicate results - ️️Five steps for tax research A corporation is audited by the IRS and does not agree with the findings. The case has been heard by the U.S. Court of Federal Claims. Which court does the company's tax attorney turn to next? U.S. Tax Court U.S. District Court U.S. Supreme Court U.S. Court of Appeals for Federal Circuit - ️️U.S. Court of Appeals for Federal Circuit Which tax court has no appeals? - ️️US Tax Court Small Claims EMAIL ME: EMAIL ME: [Date] 7 The US Tax court and US District courts have the same authority. In which court can appeals from these two courts be filed - ️️US. Circuit Court of Appeals (1st-11th districts & DC Circuit) Which court is the highest? - ️️US Supreme Court What is the court hierarchy for the federal claims? - ️️US Court of Federal Claims -> Us Circuit Court of Appeals (Federal Claims) -> US Supreme Court What is the court hierarchy for other claims? - ️️US Tax Court OR US District Court -> US Circuit Court of Appeals (Districts and DC) -> US Supreme Court One taxpayer is a rancher who lives in Texas. One year the herd of cattle was infested with hoof-andmouth disease and had to be destroyed. The taxpayer's insurance policy reimburses for an amount in excess of the tax basis in the cattle, thereby creating an insurance gain. Which tax form governs the treatment of this event? Trade or business losses-Schedule C Farm income or loss/Schedule F Sale or exchange of investment-Schedule D Involuntary exclusion-Form 4797 - ️️Involuntary exclusion-Form 4797 EMAIL ME: EMAIL ME: [Date] 8 Which form deals with Itemized Deductions? - ️️Schedule A Which form deals with US Individual Income Tax Return? - ️️Form 1040 Which form deals with Interest and Ordinary Dividends? - ️️Schedule B Which form deals with Profit or Loss from Business? - ️️Schedule C Which form deals with Capital Gains and Losses? - ️️Schedule D Which form deals with Sales and Other Dispositions of Capital Assets? - ️️Form 8949