Which of the Following Statements Are Correct

question 121

Multiple Choice

Which of the following statements are correct?

• A) If an exempt organization has annual gross receipts of less than $50,000, it files Form 990-N.
• B) Private foundations must file Form 990-PF (Return of Private Foundation).
• C) An exempt organization with less than $250,000 in gross receipts may file a Form 990-EZ.
• D) Only a. and b. are correct.
• E) a., b., and c. all are correct.

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Definitions:

Capital Gains Tax

A tax on the profit realized from the sale of a non-inventory asset that was purchased at a cost amount that was lower than the amount realized on the sale.

Marginal Tax Rate

The percentage of tax applied to your next dollar of income, reflecting the tax bracket into which the last dollar of taxable income falls.

Corporate Tax System

The structure by which businesses are taxed by the government on their profits, incorporating varying rates and regulations depending on the country or jurisdiction.

Targeted Rates

Interest rates or inflation rates that central banks aim for to control economic variables like inflation and unemployment.