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
Q. Equilibrium in the labor market? Equilibrium in the labor market  Real wage W/P will be equal to the equilibrium real wage in the classical model

Historically, shifts toward a more expansionary monetary policy have often been associated with increases in real output. Is this surprising? Why or why not? Can an expansion in th

n 2013, approximately 58 percent of the adult population (245 million) was employed, the lowest employment rate in 20 years. If the employment rate increased to the prerecession l

Explain why a perfectly competitive firm does not expand its sales without limit if its horizontal demand curve indicates that it can sell as much as desires at the current market

In general, economists have found that as nations' levels of per capita real Gross Domestic Product (GDP) increase, A. the rate of population growth declines. B. the rate of

factors affecting national income


Use the monopoly model to explain how providers are able to charge different groups of patients different prices.

Members of the Organization for Economic Cooperation and Development are: 20 countries formerly signed the Convention on the Organization for Economic Co-operation and Develop

Define the term- Wages and income Remember that by wage we mainly mean what you receive for working one hour, whereas income is the total revenue from all sources over a longe