The Organization Shelter the Needy Is Completing Its Form 990

question 17

Multiple Choice

The organization Shelter the Needy is completing its Form 990 and it is trying to determine if it has unrelated business income on which it must pay taxes.Which of the following would be subject to unrelated business income taxes?

• A) The Shelter sold art work it had received as a donation.
• B) Volunteers raised several thousand dollars in a marathon sponsored for the benefit of the Shelter.
• C) The Shelter earned revenues from the self-service laundry facilities it provides in two of its low-income temporary housing facilities.
• D) None of the items listed would be subject to unrelated business income taxes.

---

Definitions:

Spot Trade

A transaction that involves the immediate exchange of financial instruments or commodities.

Rupees

The official currency of India, symbolized as INR and used also in other South Asian countries.

International Fisher Effect

A theory proposing that the difference in nominal interest rates between two countries is equal to the expected change in their exchange rates.

Foreign Currency Approach

A method in financial analysis or accounting that deals with the effects of exchange rates on foreign currency transactions and translations.