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
What are the crisis affect the economies This crisis would affect the UK in 3 major ways. First the UK would be unable to sell its exports to these economies if they are hea

Provide an explanation of difference between opportunity and accounting cost, and accounting and economic profits. Then, please provide an example from your experience where opport

Store of value - Economic functions of money If you are a fisherman and have a temporary surplus of fish that you want to store for the future, storing the fish might not b

Determine the term- GDP per capita GDP, being a flow, isn't a measure of the total wealth of a country though a measure of the "income" of country during a certain period of ti

The United States Treasury borrows money on behalf of the federal government all the time. One type of the government borrowing, called a treasury bills, promises a fixed payment a

Let kids denote the number of children ever born to a woman, and let educ denote years of education for the woman. A simple model relating fertility to years of education is kids =

Exchange Rate Management: Following two  stage devaluation of the Indian rupee  in quick succession in July 1991, the  government introduced Liberalized  Exchange Rate System

Discuss the three major economic indicators and how they are indicative of our current economic climate.

The aim of this task is to explore the effects of a supply shock on a firm and thereby on the industry. Suppose that war breaks out in the Middle East, where a considerable portion

More than ever, groups and teams are responsible for executing tasks in the workplace. Take a position on the following statement: All organizations should use the group structure