Taxation Paper 6

1

Which of the following activities regularly conducted by a tax-exempt organization will result in unrelated business income?
I. Selling articles made by handicapped persons as part of their rehabilitation, when the organization is involved exclusively in their rehabilitation.
II. Operating a grocery store almost fully staffed by emotionally handicapped persons as part of a therapeutic program.






2

Which one of the following statements is correct with regard to unrelated business income of an exempt organization?






3

Which of the following activities regularly carried out by an exempt organization will not result in unrelated business income?






4

If an exempt organization is a corporation, the tax on unrelated business taxable income is






5

During 2012, Help, Inc., an exempt organization, derived income of $15,000 from conducting bingo games. Conducting bingo games is legal in Helpís locality and is confined to exempt organizations in Helpís state. Which of the following statements is true regarding this income?






6

Which of the following statements is correct regarding the unrelated business income of exempt organizations?






7

An incorporated exempt organization subject to tax on its 2012 unrelated business income






8

If an exempt organization is a charitable trust, then unrelated business income is






9

With regard to unrelated business income of an exempt organization, which one of the following statements is true?






10

Miramar Corp. has total business income of $1 million, and in State XY has a sales factor of 60%, a payroll factor of 50%, and a property factor of 49%. What is Miramarís State XY UDITPA appointment factor and State XY business income?






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