Business, 05.05.2020 05:32 chantellejames4073
The Open Museum is an exempt organization that operates a gift shop. The museum's annual operations budget is $3,200,000. Gift shop sales generate a profit of $900,000. Another $600,000 of investment income is generated by the museum's endowment fund. Both the income from the gift shop and the endowment income are used to support the exempt purpose of the museum. The balance of $1,700,000 required for annual operations is provided through admission fees.
Wayne Davis, a new board member, does not understand why the museum is subject to tax at all, particularly because all of the entity's profits are used in carrying out the mission of the museum. The museum's address is 250 Oak Avenue, Peoria, IL 61625.
Required:
(a) Calculate the amount of unrelated business income.
(b) Assume instead that the endowment income is reinvested in the endowment fund, rather than being used to support annual operations. Calculate the amount of unrelated business income.
(c) As the museum treasurer, write a letter to Wayne explaining the reason for the tax consequences. Mr. Davis's address is 45 Pine Avenue, Peoria, IL61625.
Answers: 2
Other questions on the subject: Business
Business, 22.06.2019 10:30, gonzalesalexiaouv1bg
The advertisement demonstrates a popular way companies try to sell a product. what should consumers consider when it comes to the price of this product? it includes shipping and handling costs. it takes into account maintenance costs. it explains why this price is a good deal. it makes the full cost appears lower than it is.
Answers: 1
Business, 23.06.2019 11:30, keke6361
When balancing wheels with either dynamic or road force balancers, technician a says it is really important to follow the instructions provided with the particular balancer you're using. technician b says that when rebalancing a wheel, if it is out of balance, it is best to remove the old weights and recheck the balance before adding new weights. who is correct?
Answers: 2
Business, 23.06.2019 17:00, jaleewoodyard1
Shawshank real estate agency. oct. 1 pete shawshank begins business as a real estate agent with a cash investment of $25,000 in exchange for common stock. 2 hires an administrative assistant. 3 purchases office furniture for $2,900, by paying $700 cash with the balance on account. 6 sells a house and lot for n. kidman, earning a fee of $3,600, with $600 collected in cash and the balance billed to n. kidman. 27 pays $900 on the balance related to the transaction of october 3. 30 pays the administrative assistant $2,300 in salary for october. 31 collects $1,200 of the balance owed by n. kidman. instructions: (a) journalize the transactions. (you may omit explanations.) (b) what balance would shawshank real estate agency report for accounts payable in its october 31 financial statements? in which category of which financial statements would it be found? (c) what balance would shawshank real estate agency report for accounts receivable in its october 31 financial statements? in which category of which financial statements would it be found?
Answers: 3
Business, 23.06.2019 20:30, skywil8981
Hey guys i need in your own words, tell us why you would be a great team memberand what sets you apart from other candidates ? (taco bell) at least a paragraph
Answers: 1
You know the right answer?
The Open Museum is an exempt organization that operates a gift shop. The museum's annual operations...
Questions in other subjects:
Mathematics, 05.10.2019 21:10
Chemistry, 05.10.2019 21:10
Biology, 05.10.2019 21:10
Mathematics, 05.10.2019 21:10
