Which of the following statements is correct?
A) A private foundation is, in general, exempt from Federal income tax.
B) A private foundation may be subject to certain types of Federal income tax.
C) If a broad public support test is satisfied, an exempt organization that otherwise would be classified as a private foundation is not classified as a private foundation.
D) Only b. and c. are correct.
E) a., b., and c. are correct.

Question

Quizplus · Accepted Answer

A private foundation is generally exempt from federal income tax but may be subject to certain types of federal income tax. If a private foundation satisfies a broad public support test, it is not classified as a private foundation. Therefore, all of the statements (a, b, and c) are correct.

Which of the Following Statements Is Correct