What are the tax consequences of each option

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Second Church is going to operate a gift and book shop that will include only religious articles in its inventory. The shop will be staffed by employees who are not church members. Under consideration are two options: (1) organizing the shop as a wholly owned corporate subsidiary and (2) including it within the organizational structure of second church. The projected annual profits of $100000 are to be used in the church's outreach mission. What are the tax consequences of each option? Which should second church select?

Reference no: EM13131044

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