AAA is a private educational institution. Which of the following is TRUE? * Its income from related and unrelated activities are subject to income tax. If the ratio of the gross income from unrelated activities over total gross income does not exceed 50%, it is subject to a preferential tax rate of 1%. If the ratio of the gross income from unrelated activities over total gross income exceeds 50%, it is subject to the regular income tax rate. All of the above
AAA is a private educational institution. Which of the following is TRUE? * Its income from related and unrelated activities are subject to income tax. If the ratio of the gross income from unrelated activities over total gross income does not exceed 50%, it is subject to a preferential tax rate of 1%. If the ratio of the gross income from unrelated activities over total gross income exceeds 50%, it is subject to the regular income tax rate. All of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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AAA is a private educational institution. Which of the following is TRUE? *
Its income from related and unrelated activities are subject to income tax.
If the ratio of the gross income from unrelated activities over total gross income does not exceed 50%, it is subject to a preferential tax rate of 1%.
If the ratio of the gross income from unrelated activities over total gross income exceeds 50%, it is subject to the regular income tax rate.
All of the above
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