For Each of the Following Taxes That Are Imposed on Private

question 112

Multiple Choice

For each of the following taxes that are imposed on private foundations and/or foundation managers, match the appropriate initial tax or additional tax.
-Tax on excess business holdings

• A)10% initial tax and 25% additional tax on private foundation.
• B)30% initial tax and 100% additional tax on private foundation.
• C)10% initial tax and 200% additional tax on private foundation.
• D)10% initial tax and 100% additional tax on disqualified person.
• E)10% initial tax and 200% additional tax on the disqualified person.

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Definitions:

Annual Payments

Regular payments made once a year, often used in the context of loans, annuities, or insurance policies.

APR

Annual Percentage Rate, which represents the annual cost of borrowing or the annual yield from an investment.

Interest Rate

The financial percentage of the principal demanded by a lender for giving a borrower access to resources.