CHAPTER23QUIZ - Exempt Entities 23-1 CHAPTER 23 EXEMPT...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
23-1 CHAPTER 23 EXEMPT ENTITIES EXAMINATION QUESTIONS ____1. The tax consequences to a donor of making a charitable contribution to an exempt organization that is not classified as a private foundation are better than the tax consequences to a donor of making a charitable contribution to an exempt organization that is classified as a private foundation. ____2. An excise tax is imposed on a private foundation for failure to distribute sufficient levels of income. ____3. A profit-related activity of an exempt organization is subject to the unrelated business income tax even if the merchandise sold has been received as a contribution. ____4. The income from a bingo game is not unrelated business income if the bingo game is legal under both state and local law, and commercial bingo games ordinarily are not permitted in the jurisdiction. ____5. The due date for the Exempt Organization Business Income Tax Return (Form 990-T) is the fifteenth day of the fourth month after the end of the taxable year. 6. Which of the following favorable tax consequences are usually associated with exempt status? a. Exempt from Federal income taxes. b. Gifts to the organization often can be deducted by the donor. c. Qualify for reductions in postage rates. d. Exempt from State income tax. e. All of the above. 7. Which of the following is a common characteristic of exempt organizations? a. The organization is not a for-profit entity. b. The organization serves some type of common good. c. The organization does not exert political influence. d. Net earnings do not benefit the members of the organization. e. All of the above. 8. Which of the following are exempt organizations to which contributions made are eligible for the charitable contributions deduction? a.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

CHAPTER23QUIZ - Exempt Entities 23-1 CHAPTER 23 EXEMPT...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online