Which of the Following Statements Regarding Low-Cost Articles Is Correct

question 106

Multiple Choice

Which of the following statements regarding low-cost articles is correct?

• A)The distribution of low-cost articles can be classified as not being an unrelated trade or business.
• B)For 2012, a low-cost article is one that costs $9.70 or less.
• C)Any contributions received as the result of the distribution of low-cost articles must be included in unrelated business income.
• D)Only a.and b.are correct.
• E)a., b., and c.are correct.

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Definitions:

ICJ

Stands for the International Court of Justice, which is the principal judicial organ of the United Nations, responsible for settling legal disputes between states and giving advisory opinions.

United Nations

An international organization founded in 1945 to promote peace, security, and cooperation among the world's nations.

NAFTA

The North American Free Trade Agreement, an agreement signed by Canada, Mexico, and the United States, creating a trilateral trade bloc in North America.

Trade Barriers

Restrictions imposed by a government on international trade, often to protect domestic industries from foreign competition.