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
Illustrate the three approaches of measuring national income? Show that these three approaches give identical result. Explain private saving. How is the private saving used


An antenna shown in Figure is to be adjusted from its current position to a new desired position by turning a potentiometer at an angle θ i (t) . The potentiometer converts the an

Question 1: Consider a two-period, two-person pure exchange economy. Utility functions and endowments are given as follows. u1(x0; x1) = (x0x1)2 and e1 = (18; 4) u2(x0; x1) = ln x0

Determine about the Expected inflation Note that it is changes in prices during 2008 which matter for the high real interest rate (the time period when your deposit is earning

The benefits of capitalism are that the governments have limited control over other business, which lets business compete.


This problem revolves around determining the LM curve, as we did earlier in the term such that money demand (M D ) equals money supply (M S ), however in this instance under differ

Cd players are produced on an automated assembly line process. The standard cost of CD players is 150.00 per unit. The sales price is $300.00 per unit. To achieve a 10 percent mult

List and briefly describe the principal causes of high population growth in developing countries and the major consequences.