Use Illustration 13–4 as a guide in completing this exercise.
1. Fredericksburg Chamber of Commerce
2. American Diabetes Association
3. American Legion
4. American Museum of Natural History
5. American Institute of Certified Public Accountants
6. Wee Care Daycare
7. Allentown Racquetball Association
8. Citizen’s to Elect Harvey

Required
Indicate under which Internal Revenue Code section each of the above NFP entities is most likely to be exempt from federal income tax.

Data From Problem 13-4

What is the purpose of Form 990? Because there are different types of Form 990, explain how an NFP would know which type it must file.