WGU C239 – Final Exam Key Study Guide | 2026 Update

WGU C239 Final Exam Key Study Guide WGU C239 Final Exam Key Study Guide.pdf WGU C239 Final Exam Key Study Guide.pdf


WGU C239 Final Exam Key Study Guide

Section 351: Transfers to Corporation Controlled by Transferor

- Must transfer property (not services) solely for stock

- Transferors must control 80% immediately after exchange

- Boot triggers gain; liabilities assumed may also trigger gain (if > basis)

- IRC §351, §358, §362



Corporate Taxable Income

- Deductions include ordinary and necessary business expenses

- Limitations on executive compensation (IRC §162(m))

- Charitable contributions limited to 10% of taxable income before certain deductions

- IRC §170, §243 (DRD)



Dividends and E&P

- Distributions taxed as dividends to extent of E&P

- Excess = return of capital (reduces basis), then capital gain

- Constructive dividends: disguised compensation or personal use

- IRC §301, §316



Stock Redemptions

- Use §302(b) tests: Not essentially equivalent, substantially disproportionate, complete termination, partial

liquidation

- Qualifying redemptions = capital gain; nonqualifying = dividend

- IRC §302, §318



Corporate Liquidations

- Complete liquidation: Gain/loss recognized by shareholders (§331) and corporations (§336)

- Subsidiary liquidations can be tax-free under §332 and §337

- IRC §331, §336, §337, §332



This study source was downloaded by 1827175 from cliffsnotes.com on 01-13-2026 18:38:32 GMT -06:00

WGU C239 Final Exam Key Study Guide.pdf WGU C239 Final Exam Key Study Guide.pdf WGU C239 Final Exam Key Study Guide.pdf
https://www.cliffsnotes.com//study-notes/28027033