Federal and state taxing-tax-exempt, Macroeconomics

Please select either question (a) or question (b).  Do NOT answer both questions.

a.  Mr. William Randolph Hearst is an entrepreneur based in California.  He owns many newspaper-publishing companies in California.  Mr. Hearst contracted with several syndicates in California for its supply of comic strips.  The syndicates carry out these contracts by sending Mr. Hearst fiber mats bearing impressions of the current sequence of strips.  These mats are manufactured by the syndicates, from the original drawings, by a photo-engraving process.  Mr. Hearst uses the mats in the first of a series of operations culminating in the production of a metal plate from which the comic page is printed.  Mr. Hearst pays the syndicates for the comic strip mats sums, which are greatly in excess of the price of blank mats. Was this transaction subject to sales tax?

b.  The Ashram is a retirement community in Davis, California.  Next to the Ashram is the Ashram Church.  The Ashram operates as a non-profit corporation having obtained tax-exempt status from both the federal and state taxing authorities. In determining whether to accept an applicant for residence in the Ashram, the board of directors considered the applicant's moral character, the recommendation of the Ashram church, and his/her physical and financial condition.  Residents make a one-time nonrefundable donation to the Ashram of $100,000, which guaranteed lifetime healthcare. The residents also pay a modest monthly maintenance fees ranging from $300.00-$500.00 per month. Residents of efficiency apartments in the Ashram were not requested to make the "one-time donation" but they paid $700.00 per month.  Officials of the Ashram did not recall refusing an applicant for residents due to inability to pay the fees, yet the ability to pay was a factor in the evaluation of an application.  The Ashram claimed that the property was exempt because it was used purely and exclusively for religious and /or charitable purpose.  California disagrees and the matter is now before you for a decision.

 

 

Posted Date: 3/21/2013 2:38:06 AM | Location : United States







Related Discussions:- Federal and state taxing-tax-exempt, Assignment Help, Ask Question on Federal and state taxing-tax-exempt, Get Answer, Expert's Help, Federal and state taxing-tax-exempt Discussions

Write discussion on Federal and state taxing-tax-exempt
Your posts are moderated
Related Questions
Cost Reduction Positive measures to effect a lowering of costs include:  reducing national insurance contributions (an  ad valorem  tax on employing labor);

For retirement planning, you decided to deposit $1,000 per month and increase your deposit by $100 per month. How much will you have at the end of 10 years if the bank pays 3% annu

In real life, the operation of simple multiplier is affected by many leakages. Leakages in the multiplier arise out of the following reasons: (1) Saving:  If all the income is sp

Q. Discuss about the factors affecting the Price Elasticity of Demand. a. Availability of Substitute- Availability of close substitute is important determinants of elasticity of

Steps to real wage rates to fall Wage 'stickiness' or wage inflexibility may stop the real wage rate falling to the full-employment wage rate. Stickiness or inflexibility is ca

1 .Use the concepts of sampling error and z- scores to explain the concept of distribution of sample  means. (this is a paragraph answer needed) 2. Describe the distribution

Q. Relation between nominal and real interest rate? Relation between nominal interest rate, real interest rate and inflation  If we signify the nominal interest rate by R

1.  You are managing a breakfast and lunch only restaurant that sells all-inclusive plated meals (i.e. all lunches include any protein or hot foods as well as salads and sides on a

Could you please tell me an example and describe example of macroeconomics?

Two drivers --- Tom and Jerry --- each drives up to a gas station. Before looking at the price, each places an order. Tom says, "I'd like 10 gallons of gas." Jerry says, "I'd like