C239 - Advanced Tax Concepts PRE-
ASSESSMENT 2025 passed solution (tips)
Western Governors University
SCORED QUESTIONS 99
FAILEDQUESTION 0
Your answers
1 of 99
Term
C Corporation owns 100% of the stock of B Corporation. The adjusted
basis of its stock investment is $100,000. A plan of liquidation is
adopted.
B Corporation distributes to C Corporation assets with a $325,000 FMV
and a $275,000 adjusted basis. B also distributes liabilities in the
amount of $40,000. B Corporation has a $150,000 earnings and
profit (E & P) balance.
What is C Corporation's gain and/or loss on the redemption of B
,Corporation's stock?
$50,000 realized gain, but no recognized gain
$150,000 realized and recognized gain
$185,000 realized gain, but no recognized gain
$225,000 realized and recognized gain
Give this one a try later!
U.S. Court of Appeals for Federal $185,000 realized gain, but no
Circuit recognized gain
Decrease of $13,600
(20K) loss from adjusted basis
60K gain from debt relief $415,000 refund due
40K * .34 = $13,600 tax payable which
decreases corporations E&P
Don't know?
, 2 of 99
Term
Rule designed to require taxpayers who recognize net 1231 gains in the
current year to recapture current-year gains as ordinary to the extent
the taxpayer deducted ordinary net losses in the prior years. It is
requires the tax-payer to go back five years preceding the current
year.
Give this one a try later!
To the state of the corporate
S corporation headquarters of the payer
The target corporation's
This is the Look-back rule historical business assets
Don't know?
3 of 99
Term
Commerce Clearing House's (CCH) Standard Federal Tax Reporter
Research Institute of America's (RIA) United States Tax Reporter
Give this one a try later!
, guidelines examples of annotated tax
for tax fraud investigations
service
types of tax evasion strategies methods for calculating tax penalties
Don't know?
4 of 99
Term
Which provision found in the home sale rules encourages home
ownership?
Interest on unsecured debt is deductible by an individual or married
couple.
$500,000 of gain on sale of primary residence owned for two years
may be excluded by a single taxpayer.
Interest on up to $100,000 of home equity debt may be deducted.
$250,000 of gain on sale of primary residence owned for two years
may be excluded by a single taxpayer.
Give this one a try later!
$4,560
Not qualified means no QBI $68,000
deduction Compensation for services 50K
(50K-12K) * .12 = $4,560 Dividends from corp 15K
other income source 3K
ASSESSMENT 2025 passed solution (tips)
Western Governors University
SCORED QUESTIONS 99
FAILEDQUESTION 0
Your answers
1 of 99
Term
C Corporation owns 100% of the stock of B Corporation. The adjusted
basis of its stock investment is $100,000. A plan of liquidation is
adopted.
B Corporation distributes to C Corporation assets with a $325,000 FMV
and a $275,000 adjusted basis. B also distributes liabilities in the
amount of $40,000. B Corporation has a $150,000 earnings and
profit (E & P) balance.
What is C Corporation's gain and/or loss on the redemption of B
,Corporation's stock?
$50,000 realized gain, but no recognized gain
$150,000 realized and recognized gain
$185,000 realized gain, but no recognized gain
$225,000 realized and recognized gain
Give this one a try later!
U.S. Court of Appeals for Federal $185,000 realized gain, but no
Circuit recognized gain
Decrease of $13,600
(20K) loss from adjusted basis
60K gain from debt relief $415,000 refund due
40K * .34 = $13,600 tax payable which
decreases corporations E&P
Don't know?
, 2 of 99
Term
Rule designed to require taxpayers who recognize net 1231 gains in the
current year to recapture current-year gains as ordinary to the extent
the taxpayer deducted ordinary net losses in the prior years. It is
requires the tax-payer to go back five years preceding the current
year.
Give this one a try later!
To the state of the corporate
S corporation headquarters of the payer
The target corporation's
This is the Look-back rule historical business assets
Don't know?
3 of 99
Term
Commerce Clearing House's (CCH) Standard Federal Tax Reporter
Research Institute of America's (RIA) United States Tax Reporter
Give this one a try later!
, guidelines examples of annotated tax
for tax fraud investigations
service
types of tax evasion strategies methods for calculating tax penalties
Don't know?
4 of 99
Term
Which provision found in the home sale rules encourages home
ownership?
Interest on unsecured debt is deductible by an individual or married
couple.
$500,000 of gain on sale of primary residence owned for two years
may be excluded by a single taxpayer.
Interest on up to $100,000 of home equity debt may be deducted.
$250,000 of gain on sale of primary residence owned for two years
may be excluded by a single taxpayer.
Give this one a try later!
$4,560
Not qualified means no QBI $68,000
deduction Compensation for services 50K
(50K-12K) * .12 = $4,560 Dividends from corp 15K
other income source 3K
