Q1: Which of the following organizations is exempt from federal income tax under Section 501(c)(3)?

A Cobra, Inc., a corporation, operated to advance the financial interests of its shareholders.

B Amelia Hendricks Trust, a trust set up for the benefit of Amelia Hendricks' four grandchildren.

C Reverend Tim Collins, a sole proprietorship, operated exclusively to advance a religious purpose. 2ND CHOICE

D Beakers and Test Tubes, Inc., a corporation, operated exclusively to advance scientific purposes. 1ST CHOICE

Q2

Which of the following must be provided either with or on Form 990, Return of Organization Exempt from Income Tax?

A A copy of Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, or Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.

B A statement of accomplishments for the agency's three largest programs. 1ST CHOICE

C A copy of the articles of incorporation (or equivalent governing documents). WRONG

D The estimated value of volunteer labor performed on behalf of the organization. 2ND CHOICE

Q3

Which of the following is an example of an exempt organization that may be subject to unrelated business income tax?

A An animal shelter that sells donated pet supplies. NO

B A horticultural center that rents office space in its annex. No significant personal services are provided to tenants, and the annex was not debt-financed. NO

C A literary magazine that sells advertising space to local businesses. EDUCATED GUESS, PLEASE ADVISE

D A hospital gift shop that sells stuffed animals and balloons intended to be given to patients as gifts. NO

THANK YOU ALL