WGU C239 (WGUC239)

1099 Requirements - -Payment more than 600; C Corp exempt Acquisitive Reorganization - -Acquiring corporation obtains part or all of a target corporation's assets or stock Alternative Minimum Tax - -taxpayers with substantial income can't use exclusion, deductions and credits to avoid a significant part of their tax liability Alternative Minimum Tax Income - -(Regular taxable amount + AMT amount +/- adjustments) x 20% Average Tax - -Total tax liability/taxable income Bardahl Formula - -...

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? - Proportional Which federal income tax structure imposes an increasing marginal tax rate as the tax base increases? - Progressive tax What describes a gift tax? - Tax on the fair market value of wealth transfers What is a key element of an economy tax structu...

Catamount Company had current and accumulated E&P of $500,000 at December 31, 20X3. On December 31, the company made a distribution of land to its sole shareholder, Caroline West. The land's fair market value was $200,000 and its tax and E&P basis to Catamount was $250,000. The tax consequences of the distribution to Catamount in 20X3 would be: A) No loss recognized and a reduction in E&P of $250,000. B) $50,000 loss recognized and a reduction in E&P of $250,000. C) $50,000 loss recognize...

Use tax liability accrues in the state where purchased property will be used when the seller of the property is not required to collect sales tax. True False - True The state tax base is computed by making adjustments to federal taxable income. True False - True In Complete Auto Transit the court determined eight criteria for determining whether a state can tax a nondomiciliary company. True False - False The Supreme Court determined four criteria for determining whether a state can t...

Angel has an AGI of $85,000 without considering the sale of a nondepreciable asset for $35,000. The asset was acquired five years ago and has an adjusted basis of $50,000. She has no other sales or exchanges. Determine Angel's AGI for the following independent situations when the asset is: A capital asset § 1231 asset - 82,000 - 70,000 A owns invest land with an adjusted bases of 50000 FMV of 70000 subject to a mortgage of 15000. B owns investment land with an adjusted basis of 60000 FMV...

1. Why would a taxpayer need to include IRS Form 8332, Release/Revocation of Claim to Exemption of Child by Custodial Parent, in their personal income tax return? A. To allow a noncustodial ex-spouse permission to take the child's dependency exemption, or to revoke same. B. To disallow an ex-spouse permission from taking child's dependency exemption because they only provided 10% of child's support. C. To disallow an ex-spouse permission from taking child's dependency exemption because...

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...