ABC is a duly-registered multipurpose cooperative with accumulated reserves totaling 9M. Which of the following income of ABC would most likely be subject to income tax? * Filing and processing fees collected from members' loan applications. Grocery income from members' purchases Rental income of facilities rented out to non-members Rental income of facilities rented out to members None of the above

ABC is a duly-registered multipurpose cooperative with accumulated reserves totaling 9M. Which of the following income of ABC would most likely be subject to income tax? * Filing and processing fees collected from members' loan applications. Grocery income from members' purchases Rental income of facilities rented out to non-members Rental income of facilities rented out to members None of the above

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter23: Exempt Entities

Section: Chapter Questions

Problem 17P

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Faith Community Church is exempt from Federal income taxation under § 501(c)(3). To supplement its contribution revenue, it holds bingo games on Saturday nights. It holds all of the licenses and permits required to do so.The net income from the bingo games is $90,000. Of these funds, $60,000 is used to support the ministry of the church. The balance of $30,000 is invested in Faith’s endowment fund for church music. Faith Community Church is located in a resort city where bingo games can be conducted by churches, charities, and for-profit entities. Will conducting the bingo games affect the exempt status of Faith Community Church? Explain.
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