CHAPTER 23 - CHAPTER 23 EXEMPT ENTIT I ES 1 Which of the...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 23 EXEMPT ENTITIES 1. Which of the following are organizations exempt under § 501(c)(3)? a. Boy Scouts of America. b. United Fund. c. League of Women Voters. d. Only a. and b. are § 501(c)(3) organizations. e. All of the above are § 501(c)(3) organizations. 2. Which of the following is not an example of an exempt organization? a. Religious, charitable, or educational organization. b. Voluntary employees’ beneficiary association. c. Labor, agricultural, or horticultural organization. d. Stock exchange. e. All of the above can be exempt from tax. 3. Lavender, Inc., a qualifying § 501(c)(3) organization, incurs lobbying expenditures of $300,000 during the taxable year. Exempt purpose expenditures are $1,900,000. If Lavender makes the election under § 501(h) to make lobbying expenditures on a limited basis, its tax liability resulting from the lobbying expenditures is: a. $13,750. b. $61,250. c. $75,000. d. $91,875. e. None of the above. 4. Which of the following statements regarding intermediate sanctions is correct? a. Intermediate sanctions are self-assessing (i.e., calculated and paid by the taxpayer rather than being imposed by the IRS).
Background image of page 1

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

View Full DocumentRight Arrow Icon
b. The tax is imposed on the exempt organization. c. Both a first-level tax and a second-level tax may apply. d. The corporate tax rates apply in calculating the amount of the tax liability. e. None of the above is correct. 5. Lilac, Inc., receives its support from the following sources. Governmental unit A, for services rendered $20,000 General public, for services rendered 40,000 Gross investment income 50,000 Contributions from individual substantial 15,000 contributors (disqualified persons) Which of the following statements is correct? a.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/01/2011 for the course ACCT 360 taught by Professor Mill during the Spring '11 term at Davenport.

Page1 / 7

CHAPTER 23 - CHAPTER 23 EXEMPT ENTIT I ES 1 Which of the...

This preview shows document pages 1 - 3. Sign up to view the full document.

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