The organization Shelter the Needy is completing its Form 990 and it is trying to determine if it has unrelated business income
on which it must pay taxes. Which of the following would be subject to unrelated business income taxes? A. The Shelter sold art work it had received as a donation.
B. Volunteers raised several thousand dollars in a marathon sponsored for the benefit of the Shelter.
C. The Shelter earned revenues from the self-service laundry facilities it provides for the benefit of tenants of its low-income temporary housing facilities.
D. None of the items listed would be subject to unrelated business income taxes.
D) None of the items listed would be subject to unrelated business income taxes.
Explanation:
Since Shelter the Needy is a tax exempt organization it must file Form 990 and must include the financial information of the nonprofit. Depending on the organization's total income for the year, it must file Form 990 or it can file Forms 990 EZ or 990 N, and if it is a foundation it must file Form 990 PF.
Any art work or other donations made to the nonprofit can be sold as long as the proceeds are used to keep the nonprofit operating. Nonprofits are also allowed to earn revenue from services that they provide as long as they are related to the organization's main activity and the proceeds are used for normal operations.
Based on the information given in the question, the maximum amount that the Cologne Division would be willing to pay for each bottle transferred would be the amount that the company can purchase the containers in the external market which is given in the question as $2.60.
That's the highest amount that they can but the containers for. Therefore, the answer is $2.60
If instead of itemizing, Mary had elected the standard deduction last year, then she wouldn't have to include any state income tax refund on her current gross income. But since she itemized her deductions and actually deducted these $600 from her gross income last year, she must include them in he current gross income.
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
