Which of the Following Statements Is Correct

question 83

Multiple Choice

Which of the following statements is correct?

• A) A feeder organization is a division of a tax-exempt organization and it is subject to the Federal income tax.
• B) A feeder organization is a tax-exempt organization whose purpose is to provide food to underprivileged children.
• C) A feeder organization is a taxable organization whose purpose is to provide reduced cost meals to its employees that are excluded from the employee's gross income.
• D) Only a. and b. are correct.
• E) None of the above statements is correct.

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Definitions:

Good and Valid

A legal term indicating that a document, agreement, or transaction is legally sound and effectively in place.

Inconsistent Warranties

Warranties that offer conflicting guarantees or statements about a product, leading to confusion about coverage.

Render Invalid

To make something null and void or to deprive it of legal force.

Construed

Interpreted or understood in a particular way, often referring to the way words or actions are perceived or legally interpreted.