Which of the Following Taxes That Are Imposed on Private

question 77

Multiple Choice

Which of the following taxes that are imposed on private foundations is, effectively, an audit fee to defray IRS expenses?

• A)Tax on self-dealing.
• B)Tax on failure to distribute income.
• C)Tax on excess business holdings.
• D)Only a.and c.
• E)None of the above.

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Definitions:

Proper Form

Compliance with established rules and guidelines, ensuring correctness in structure or procedure.

Closing

The process at the end of an accounting period where all financial statements are finalized and all temporary accounts are closed to prepare for the next accounting period.

Post-closing Trial Balance

A list of all accounts and their balances after closing entries are made, serving as a check to ensure that debits equal credits and that the ledger is in balance for the new accounting period.

Capital

Refers to the financial assets or resources that individuals or businesses use to fund their operations and investments.