Which of the Following Statements Is Incorrect

question 37

Multiple Choice

Which of the following statements is incorrect?

• A)No exempt organizations can engage in any lobbying activities.
• B)Certain exempt organizations can elect to engage in lobbying activities on a limited basis.
• C)Churches can engage in lobbying activities on an unlimited basis because of the separation of church and state provision.
• D)Only b.and c.are incorrect.
• E)Only a.and c.are incorrect.

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Definitions:

Cents Per Mile

An IRS-allowed method of calculating deductions for business vehicle expenses based on miles driven.

Net Investment Income

The total income received from investment assets, like stocks and bonds, minus related expenses.

Investment Interest Expense

The interest paid on money borrowed to purchase taxable investments, which can be deducted up to the amount of net investment income.

Stock Purchase

The act of buying shares of a corporation, thereby acquiring a portion of ownership in the company.