While Engaging in a Prohibited Transaction Can Result in an Exempt

question 85

True/False

While engaging in a prohibited transaction can result in an exempt organization being subject to tax,it will not result in an exempt organization losing its exempt status.

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Definitions:

Long-Term Investments

Long-Term Investments are assets that a company intends to hold for more than one fiscal year, often including stocks, bonds, or real estate.

Property, Plant, and Equipment

Long-term assets used in the production of goods and services, such as buildings, machinery, and vehicles.

Current Liability

A company's debts or obligations that are due to be paid to creditors within one year.

Coming Year

The subsequent year or the next twelve months.