Which of following organisations is least likely to be exempt from income tax? (a) A croquet...

Which of following organisations is least likely to be exempt from income tax?

(a) A croquet club established to promote the sport of croquet where no entertainment is provided to members.

(b) A tennis club established to promote the sport of tennis where the club has poker machines on the premises to assist in funding the sporting activities of the members.

(c) A swimming club originally established to promote swimming, but the club currently has extensive entertainment facilities available to the general public and earns substantial amounts from the entertainment activities.

(d) A darts club originally established to promote darts where the club runs lotteries to assist in funding the sport of darts.

(e) A trotting club originally established to promote horse racing and which currently receives income from the sale of the rights to televise the races. The funds received for the racing rights are used to improve track facilities.

Expert Solution

Ans:

Which of following organisations is least likely to be exempt from income tax?

(a) A croquet club established to promote the sport of croquet where no entertainment is provided to members.

(b) A tennis club established to promote the sport of tennis where the club has poker machines on the premises to assist in funding the sporting activities of the members.

C) A swimming club originally established to promote swimming, but the club currently has extensive entertainment facilities available to the general public and earns substantial amounts from the entertainment activities.

(d) A darts club originally established to promote darts where the club runs lotteries to assist in funding the sport of darts.

(e) A trotting club originally established to promote horse racing and which currently receives income from the sale of the rights to televise the races. The funds received for the racing rights are used to improve track facilities.

Summary:

All other clubs are using there funds/incomes for supporting the targeted sports which amount can be exempted as donations.

but in the case of the swimming club they started to provide entertainment facilities to the general publics and start to earning money but they didn't utilised single penny of that money behind their sports ..so it can not be exempted from tax, Because they are not supporting any sports with that income , so it's can not be exempted.

ekkarill92 answered 1 year ago

Which of the following is least likely to be included in the tax constraint for an...

Which of the following is least likely to be included in the tax constraint for an individual investor? a. The federal withholding tax from the individual's employment income. b. The tax liability from a taxable lump sum received as part of an employment contract. c. Property taxes to be paid during the upcoming year from ownership of a beach house. d. Capital gains taxes owed on the sale of a watch worn by Benjamin Franklin.

which of the following is least likely to be included in accumulated other comprehensive income as...

which of the following is least likely to be included in accumulated other comprehensive income as a component of stockholders equity? a. foreign currency transaction gain. b. net unrealized changes in the value of available for - sale securities. c. net gain or loss from derivative cash flow hedged. d. Pension plan prior to service cost adjustment.

Which of the following is least likely to be an income inferior good? Select one:

Which of the following is least likely to be an income inferior good? Select one: a. Beans. b. Education. c. Corn. d. Rice.

Which of the following items is not a permanent book/taxdifference?A) Tax-exempt life insurance proceeds...

Which of the following items is not a permanent book/tax difference?A) Tax-exempt life insurance proceedsB) Non-deductible meal expenseC) Accrued vacation pay liability not paid within the first 2 1/2 months of the next tax yearD) Excess tax benefits from the exercise of NQOsPlease explain

Q33 Which of the following statements is least likely to lead to a conclusion that the...

Q33 Which of the following statements is least likely to lead to a conclusion that the taxpayer was undertaking the mere realisation of a capital asset? a. The land was surplus to the taxpayer’s needs in carrying on the taxpayer’s manufacturing business. b. The taxpayer set up their own on-site sales office to assist with the sale of the blocks of land. c. The taxpayer developed the land to the extent necessary to get local council approval and no more....

If the applicable income tax rate is 40% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the corporation's tax liability?

Your corporation has the following cash flows:Operating income$250,000Interest received$10,000Interest paid$45,000Dividends received$24,000Dividends paid$50,000If the applicable income tax rate is 40% (federal and state combined), and if 70% of dividends received are exempt from taxes, what is the corporation's tax liability?a. $84,436b. $85,325c. $88,880d. $73,770e. $94,213

1) Which of the following affected employees are exempt from overtime provisions as found on the...

1) Which of the following affected employees are exempt from overtime provisions as found on the DIR website? Taxicab Drivers Sheepherders Outside Salespersons Motion Picture Projectionists All of these are exempt from overtime provisions None of these are exempt from overtime provisions 2) According to the DIR, an employer may establish different “workweeks” for different employees. T/F 3) Locate the Industrial Welfare Commission wage order 12-2001 regulating wages, hours and working conditions in the Motion Picture Industry. Under the General...

Which of the following pension benefit plans is exempt from filing a return/report?

Which of the following three situations is least likely to occur at the same time as...

Which of the following three situations is least likely to occur at the same time as the other two situations? Why? a-Real GDP is less than potential GDP.   b-An economy in a strong, 5-year expansion.   c-An unemployment rate above the natural rate of unemployment.

Which one of the following types of contracts is least likely to be considered a contract...

Which one of the following types of contracts is least likely to be considered a contract of adhesion? A) homeowners policy contract B) commercial fire insurance policy contract C) manuscript or customized policy contract D) personal auto policy contract

Question