Garden, Inc

question 64

Multiple Choice

Garden, Inc., a qualifying § 501(c) (3) organization, incurs lobbying expenditures of $210,000 during the taxable year. Exempt purpose expenditures are $900,000. If Garden makes the election under § 501(h) to make lobbying expenditures on a limited basis, its tax liability resulting from the lobbying expenditures is:

• A) $0.
• B) $12,500.
• C) $50,000.
• D) $60,000.
• E) None of the above.

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Definitions:

IUPAC Name

Stands for the International Union of Pure and Applied Chemistry name, which is a standardized system of naming chemical compounds according to their structure.

Diol

An organic compound containing two hydroxyl groups attached to different carbon atoms.

Primary Alcohol

An alcohol where the carbon bonded to the OH group is also attached to only one other carbon atom, typically more reactive in oxidation reactions.

Secondary Alcohol

An alcohol with the hydroxyl group attached to a carbon atom that is bonded to two other carbon atoms.