Which of the following statements regarding low-cost articles is correct?
Which of the following statements regarding low-cost articles is correct?
A)The distribution of low-cost articles can be classified as not being an unrelated trade or business.
B)For 2017,a low-cost article is one that costs $10.70 or less.
C)Any contributions received as the result of the distribution of low-cost articles must be included in unrelated business income.
D)Only a.and b.are correct.
E)a.,b.,and c.are correct.

Question

Quizplus · Accepted Answer

Option A is correct as the distribution of low-cost articles is not considered an unrelated trade or business.
Option B is correct as per the IRS guidelines for 2017.
Option C is incorrect as contributions received as a result of the distribution of low-cost articles are generally not included in unrelated business income unless they meet certain criteria. Therefore, option E is incorrect. 
Thus, only options A and B are correct.

Which of the Following Statements Regarding Low-Cost Articles Is Correct