Question: Please help me and answer all questions 6. A 501(c)(3) organization that otherwise would be classified as a private foundation can avoid such classification if
Please help me and answer all questions
6. A 501(c)(3) organization that otherwise would be classified as a private foundation can avoid such classification if it satisfies:
a. Only an external support test.
b. Only an internal support test.
c. Both an external support test and an internal support test.
d. An external support test, an internal support test, and a good faith test.
7. Which of the following statements is correct?
a. A private foundation is, in general, exempt from Federal income tax.
b. A private foundation may be subject to certain types of Federal income tax.
c. If a broad public support test is satisfied, an exempt organization that otherwise would be classified as a private foundation is not classified as such.
d. Choices a., b., and c. are correct.
8. Which of the following statements is correct regarding the unrelated business income tax (UBIT)?
a. To be subject to the UBIT, the exempt organization must conduct a trade or business, the trade or business is not substantially related to the exempt purpose of the organization, and the trade or business is regularly carried on by the organization.
b. To be subject to the UBIT, the exempt organization must conduct a trade or business, the trade or business must be substantially related to the exempt purpose of the organization, and the trade or business must be regularly carried on by the organization.
c. To be subject to the UBIT, the exempt organization must conduct a trade or business, the trade or business is not substantially related to the exempt purpose of the organization, and the trade or business is carried on during more than half the year.
d. An exempt entity that conducts a business that competes with for-profit businesses automatically is subject to the UBIT.
9. Which of the following requirements must be satisfied for a bingo game to be classified as not being an unrelated trade or business?
a. The bingo game is legal under both state and local law.
b. The bingo game is conducted by volunteers.
c. For-profit bingo games ordinarily are not permitted in the jurisdiction.
d. Only a. and c. must be satisfied.
10. Exempt Entities must file on which Tax Form?
a. Form 1120
b. Form 1040
c. Form 990
d. Form 8551
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