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I need the answer of part B. the answer is not 71,100 and 0. Please answer part B (not 71,100 or 0) Thank you. LO.6
I need the answer of part B.
the answer is not 71,100 and 0.
Please answer part B (not 71,100 or 0)
Thank you.
LO.6 Faith Community Church is exempt from Federal income taxation under $ 501(c)(3). To supplement its contribution revenue, it holds bingo games on Saturday nights. It holds all of the licenses and permits required to do so. The net income from the bingo games is $90,000. Of these funds, $60,000 is used to support the ministry of the church. The balance of $30,000 is invested in Faith's endowment fund for church music. Faith Community Church is located in a resort city where bingo games can be conducted by churches, charities, and for-profit entities. a. Will conducting the bingo games affect the exempt status of Faith Community Church? Explain. b. Calculate the Federal tax liability, if any, associated with the bingo games. LO.6 Faith Community Church is exempt from Federal income taxation under $ 501(c)(3). To supplement its contribution revenue, it holds bingo games on Saturday nights. It holds all of the licenses and permits required to do so. The net income from the bingo games is $90,000. Of these funds, $60,000 is used to support the ministry of the church. The balance of $30,000 is invested in Faith's endowment fund for church music. Faith Community Church is located in a resort city where bingo games can be conducted by churches, charities, and for-profit entities. a. Will conducting the bingo games affect the exempt status of Faith Community Church? Explain. b. Calculate the Federal tax liability, if any, associated with the bingo gamesStep by Step Solution
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