Which of the Following Is Not a Condition That Must

question 25

Multiple Choice

Which of the following is not a condition that must be met for contributed services to a not-for-profit organization (NPO) to be recorded as both a contribution and as an expense?

• A)The service creates or enhances nonfinancial assets,such as a carpenter renovating a building.
• B)The service is provided by someone who possesses specialized skills,such as a lawyer preparing contracts.
• C)The service provides tangible benefit,such as serving food to clients.
• D)The service would have to be purchased if not donated,such as a pro bono annual audit by a local audit firm.

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Definitions:

Uniforms

Uniforms are specific sets of clothing worn by members of the same organization or employees of a particular company, often required for identification or to maintain a professional appearance.

Appraisal Fees

Charges for the professional assessment of a property's value, typically incurred during the buying or selling process or for loan considerations.

Schedule A

A tax form used for itemizing deductions, such as medical expenses, taxes paid, interest, gifts to charity, and casualty losses.

Medical Expenses

Unreimbursed costs for healthcare services, treatments, or products that may be deductible if they exceed a certain portion of the taxpayer's adjusted gross income.