Davis, an officer for a § 501(c)(3) organization, receives benefits in the form of an overly generous health insurance plan; these benefitsare inappropriate in the context of a charitable entity of its type. The excess benefits are determined to be $79,000. Davis does not payback the excess benefits to the organization before the first-level tax is due.a. Apply the rules for intermediate sanctions. The first-level taxes imposed are as follows:On the exempt organization management: $19,750 XOn Davis: $7,900 X.

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are inappropriate in the context of a charitable entity of its type. The excess benefits are determined to be $79,000. Davis do back the excess benefits to the organization before the first-level tax is due. a. Apply the rules for intermediate sanctions. The first-level taxes imposed are as follows: On the exempt organization management: 19,750 X On Davis: $ 7,900 X.

are inappropriate in the context of a charitable entity of its type. The excess benefits are determined to be $79,000. Davis do back the excess benefits to the organization before the first-level tax is due. a. Apply the rules for intermediate sanctions. The first-level taxes imposed are as follows: On the exempt organization management: 19,750 X On Davis: $ 7,900 X.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Davis, an officer for a § 501(c)(3) organization, receives benefits in the form of an overly generous health insurance plan; these benefits
are inappropriate in the context of a charitable entity of its type. The excess benefits are determined to be $79,000. Davis does not pay
back the excess benefits to the organization before the first-level tax is due.
a. Apply the rules for intermediate sanctions. The first-level taxes imposed are as follows:
On the exempt organization management: $
19,750 X
On Davis: $
7,900 X.

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