Midnight Basketball, Inc., an exempt entity that organizes and conducts basketball games for youths ages 18-25, receives a $20,000 contribution from Brown Shoe Company. Midnight agrees to put Brown's logo on the cover of its monthly newsletter.
a. Is the contribution unrelated business income to Midnight?
b. Assume that instead of putting Brown's logo on the cover of its newsletter, Midnight agrees to include a statement in the newsletter that youth playing in the games conducted by Midnight wear shoes manufactured only by Brown. Is the contribution unrelated business income to Midnight?
b. change if the amount of the payment was $7,500 instead of $20,000?
c. Would your answer in
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q88: Faith Church, a § 501(c)(3) organization, operates
Q89: First Americans, Inc., a § 501(c)(3)
Q90: Spirit, Inc., a § 501(c)(3) organization, is
Q91: Miracle, Inc., is a § 501(c)(3) organization
Q92: Medical, Inc., a § 501(c)(3) exempt organization,
Q94: Match the following statements.
-Branded tote bags
A)Distribution of
Q95: Help, Inc., a tax-exempt organization, incurs lobbying
Q96: Rattler, Inc., an exempt organization, trains disabled
Q97: Restful, Inc., a § 501(c)(3) exempt organization,
Q98: Match the following statements.
-Corporate sponsorship payments
A)Distribution of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents