WGU C237 TAXATION I (OA) EXAM WITH
CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+ 2025 – 2026
Direct Conversion - ANSWERS-When a taxpayer receives
noncash property rather than a cast payment as a
replacement for property damaged or destroyed in an
involuntary conversion. (Ch 11-29)
Direct Write Off Method - ANSWERS-Required method for
deducting bad debts for tax purposes where businesses
deduct bad debt only when the debt becomes wholly or
partially worthless. (Ch 9-25)
Disability Insurance - ANSWERS-This pays the insured for
wages lost due to injury or disability. (Ch 5-30)
,Discharge of Indebtedness - ANSWERS-This occurs when a
taxpayer's debt is forgiven (does not have to pay the debt
back). (Ch 5-21)
1245 Property - ANSWERS-Tangible personal property and
intangible property subject to cost recovery deductions. (Ch
11-10)
1250 Property - ANSWERS-Real property subject to cost
recovery deductions. (Ch 11-14)
291 Depreciation Recapture - ANSWERS-The portion of a
corporate taxpayer's gain on real property that is converted
from 1231 gain to ordinary income. (Ch 11-14)
481 Adjustment - ANSWERS-A change to taxable income
associated with a change in accounting methods. (Ch 9-30)
Abandoned Spouse - ANSWERS-A married taxpayer who
lives apart from the spouse for the last 6 months of the year,
who files a tax return separate from the spouse, and who
maintains a household for a qualifying child. (Ch 4-24)
,Accelerated Death Benefits - ANSWERS-Early receipt of life
insurance proceeds that are not taxable un certain
circumstances, such as the taxpayer is medically certified
with an illness that is expected to cause death within 24
months. (Ch 5-28)
Accountable Plan - ANSWERS-An Employer's reimbursement
plan under which employees must submit documentation
supporting expenses to receive reimbursement and
reimbursements are limited to legitimate business
expenses. (Ch 5-23)
Accounting Methods - ANSWERS-The procedure for
determining the taxable year in which a business recognizes
a particular item of income or deduction, thereby dictating
the timing of when a taxpayer reports income and
deductions. (Ch 9-14)
Accounting Period - ANSWERS-A fixed period of time win
which a business reports income and deductions. (Ch 9-13)
Accrual Method - ANSWERS-A method of accounting that
generally recognizes income in the period earned and
recognizes deductions in the period that liabilities are
incurred. (Ch 5-6)
, Accumulated Earnings Tax - ANSWERS-A tax assessed on
corporations that retain earning without a business reason
to do so. (Ch 15-3)
Acquiescence - ANSWERS-Issued after the IRS loses a trial-
level or circuit court case where the IRS doesn't necessarily
agree with the court's ruling, but chooses to no longer
litigate the issue. (Ch 2-17)
Action on Decision - ANSWERS-An IRS pronouncement that
explains the background reasoning behind an IRS
acquiescence or nonacquiescence . (Ch 2-17)
30 - ANSWERS-Number of days that are initially given to an
audited individual or business to either request a
conference with an appeals officer or agree to the proposed
adjustment. (Ch 2-6)
90 - ANSWERS-Number of days that are given to an audited
individual or business after the appeals conference to either
pay the proposed deficiency or file a petition in the US Tax
Court to hear the case. (Ch 2-6)
CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+ 2025 – 2026
Direct Conversion - ANSWERS-When a taxpayer receives
noncash property rather than a cast payment as a
replacement for property damaged or destroyed in an
involuntary conversion. (Ch 11-29)
Direct Write Off Method - ANSWERS-Required method for
deducting bad debts for tax purposes where businesses
deduct bad debt only when the debt becomes wholly or
partially worthless. (Ch 9-25)
Disability Insurance - ANSWERS-This pays the insured for
wages lost due to injury or disability. (Ch 5-30)
,Discharge of Indebtedness - ANSWERS-This occurs when a
taxpayer's debt is forgiven (does not have to pay the debt
back). (Ch 5-21)
1245 Property - ANSWERS-Tangible personal property and
intangible property subject to cost recovery deductions. (Ch
11-10)
1250 Property - ANSWERS-Real property subject to cost
recovery deductions. (Ch 11-14)
291 Depreciation Recapture - ANSWERS-The portion of a
corporate taxpayer's gain on real property that is converted
from 1231 gain to ordinary income. (Ch 11-14)
481 Adjustment - ANSWERS-A change to taxable income
associated with a change in accounting methods. (Ch 9-30)
Abandoned Spouse - ANSWERS-A married taxpayer who
lives apart from the spouse for the last 6 months of the year,
who files a tax return separate from the spouse, and who
maintains a household for a qualifying child. (Ch 4-24)
,Accelerated Death Benefits - ANSWERS-Early receipt of life
insurance proceeds that are not taxable un certain
circumstances, such as the taxpayer is medically certified
with an illness that is expected to cause death within 24
months. (Ch 5-28)
Accountable Plan - ANSWERS-An Employer's reimbursement
plan under which employees must submit documentation
supporting expenses to receive reimbursement and
reimbursements are limited to legitimate business
expenses. (Ch 5-23)
Accounting Methods - ANSWERS-The procedure for
determining the taxable year in which a business recognizes
a particular item of income or deduction, thereby dictating
the timing of when a taxpayer reports income and
deductions. (Ch 9-14)
Accounting Period - ANSWERS-A fixed period of time win
which a business reports income and deductions. (Ch 9-13)
Accrual Method - ANSWERS-A method of accounting that
generally recognizes income in the period earned and
recognizes deductions in the period that liabilities are
incurred. (Ch 5-6)
, Accumulated Earnings Tax - ANSWERS-A tax assessed on
corporations that retain earning without a business reason
to do so. (Ch 15-3)
Acquiescence - ANSWERS-Issued after the IRS loses a trial-
level or circuit court case where the IRS doesn't necessarily
agree with the court's ruling, but chooses to no longer
litigate the issue. (Ch 2-17)
Action on Decision - ANSWERS-An IRS pronouncement that
explains the background reasoning behind an IRS
acquiescence or nonacquiescence . (Ch 2-17)
30 - ANSWERS-Number of days that are initially given to an
audited individual or business to either request a
conference with an appeals officer or agree to the proposed
adjustment. (Ch 2-6)
90 - ANSWERS-Number of days that are given to an audited
individual or business after the appeals conference to either
pay the proposed deficiency or file a petition in the US Tax
Court to hear the case. (Ch 2-6)
