WGU D239 ACCT 6100 Advanced Tax Concepts OBJECTIVE ASSESSMENT GUIDE Q & S 2025/2026

1. Which of the following is a key feature of the Alternative
Minimum Tax (AMT)?
 - A) It provides a flat tax rate for all taxpayers.
 - B) It disallows exemptions and certain deductions.
 - C) It eliminates capital gains tax.
 - D) It applies only to corporate taxpayers.
 - Correct Answer: B
 - Rationale: The AMT is designed to ensure that highincome taxpayers pay a minimum amount of tax,
disallowing certain deductions and exemptions typically
allowed under the regular income tax system.
2. Under Section 1031 of the Internal Revenue Code,
which type of property is eligible for like-kind exchange
treatment?
 - A) Personal residence
 - B) Artwork
 - C) Inventory held for sale
 - D) Rental property
 - Correct Answer: D
 - Rationale: Section 1031 allows for tax deferral on the
exchange of like-kind properties, and rental properties
qualify under this provision.
3. Which of the following best describes the concept of
"substance over form" in tax accounting?
 - A) Taxpayer must report transactions as they are legally
structured.
 - B) Tax consequences depend on the economic reality of
transactions.
 - C) It allows taxpayers to select their method of