Federal and state taxing-tax-exempt, Macroeconomics

Assignment Help:

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.

 

 


Related Discussions:- Federal and state taxing-tax-exempt

Licensed drivers revealed the following number of speeding, A sample of 2,0...

A sample of 2,000 licensed drivers revealed the following number of speeding violations. 0 violations for 1,910 drivers. 1 Violations for 46 drivers. 2 violations for 18 drivers. 3

Explain about household savings, Q. Explain about Household savings? Re...

Q. Explain about Household savings? Remember that consumption may refer to observed consumption as well as to demand for consumption. The same is true for 'household savings',

The monetary system.., bank A has a leverage ratio of 10 while bank B has a...

bank A has a leverage ratio of 10 while bank B has a leverage ratio of 20 similar losses on bank loans at the two banks cause the value of their assets to fall by 7 percent. Which

Aggregate demand in the is-lm model, Q. Aggregate demand in the IS-LM model...

Q. Aggregate demand in the IS-LM model? Aggregate demand Aggregate demand depends on Y and R in the IS-LM model As investments depend on R

Graph, show on the market for cheese that impact of what happened in the mi...

show on the market for cheese that impact of what happened in the milk market.

Illustrate about perfectly competitive market firm, Why might a perfectly ...

Why might a perfectly competitive market firm be willing to run at a loss in the short run? The assumptions of a PCM firm should be outlined in order to end that the PCM firm i

Economic functions of money - a medium of exchange, Economic functions of m...

Economic functions of money - A medium of exchange This is its most important role. Without money we would live in a barter economy where we would have to trade goods and

Income and expedenture, Illustrate the circular flow of income and expendit...

Illustrate the circular flow of income and expenditure according to their models ( classical and keynesian)

Compute the lost social welfare, Consider a market where supply and demand ...

Consider a market where supply and demand are given by QXS = -18 + PX and QXd = 90 - 2PX. Suppose the government imposes a price floor of $41, and agrees to purchase any and all un

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd