What are the tax consequences of each option

Reference no: EM13131044

Second Church is going to operate a gift and book shop that will include only religious articles in its inventory. The shop will be staffed by employees who are not church members. Under consideration are two options: (1) organizing the shop as a wholly owned corporate subsidiary and (2) including it within the organizational structure of second church. The projected annual profits of $100000 are to be used in the church's outreach mission. What are the tax consequences of each option? Which should second church select?

Reference no: EM13131044

Questions Cloud

Probability that at least one of shifts is unrepresented : Same chance of being selected as does any other group. What is the probability that at least one of the shifts will be unrepresented in that sample of workers?

Social interaction in everyday life : Social Interaction in Everyday Life" Please respond to the following and answer each question in a separate paragraph. There are 5 questions/parts so you will have 5 paragraphs in your main post.

Illustrate what is the journal entry at the end of current : At the end of the current fiscal year, the raw material to be purchased under this contract had a market value of $2.2 million. Illustrate what is the journal entry at the end of the current fiscal year?

Probability of six dandelions in area by poison distribution : Use the Poison distribution to find the indicated probabilites. Find the probability of 6 dandelions in an area of 1 m ²

What are the tax consequences of each option : Second Church is going to operate a gift and book shop that will include only religious articles in its inventory. The shop will be staffed by employees who are not church members.

Calculate an estimate of the ending balance of accounts : Calculate an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent shortages. Assume that all sales are made on account.

Create spreadsheet model for performing computer simulation : Formulate a spreadsheet model for performing a computer simulation of the daily sales. Perform 250 replications and obtain the average of the sales over the replications.

Information about charity contribution : A certain club is collecting money for a charity. A local company has agreed to contribute $1 to the charity for every $3 collected by the club. How much money must the club collect in order for the total amount for the charity,

What is the concentration of a ions at equilibrium : What is the concentration of A^3- ions at equilibrium for a 0.10 M solution of a hypothetical triprotic acid H3A, with Ka1 = 6.0 x 10^-3, Ka2 = 2.0 x 10^-8, Ka3 = 1.0 x 10^-14 ?

User Account

All Pages