Which of the Following Statements Regarding the Unrelated Business Income

question 124

Multiple Choice

Which of the following statements regarding the unrelated business income tax is not correct?

• A)Unrelated business income is income from activities not related to the exempt purpose of the exempt organization.
• B)The unrelated business income tax is levied because the exempt organization is engaging in substantial commercial activities.
• C)If the unrelated business income tax were not levied,nonexempt organizations would be placed at a substantial disadvantage when trying to compete with the exempt organization.
• D)The tax rate that is applied to unrelated business taxable income is the highest corporate tax rate.
• E)All of the above statements are correct.