BBAAA is a duly-registered credit cooperative. On one occasion, BBAAA rented out its facility to a certain review center for the conduct of review sessions. The owner of the review center is not a member of the cooperative. Is the rental income of the cooperative taxable? a. No, income of duly-registered cooperatives are excluded from taxable income (tax-exempt). b. Yes, only income from credit transactions of the cooperative is tax exempt. c. Yes, the transaction of the cooperative is not with a member hence, taxable. d. Answer not given
BBAAA is a duly-registered credit cooperative. On one occasion, BBAAA rented out its facility to a certain review center for the conduct of review sessions. The owner of the review center is not a member of the cooperative. Is the rental income of the cooperative taxable? a. No, income of duly-registered cooperatives are excluded from taxable income (tax-exempt). b. Yes, only income from credit transactions of the cooperative is tax exempt. c. Yes, the transaction of the cooperative is not with a member hence, taxable. d. Answer not given
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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BBAAA is a duly-registered credit cooperative. On one occasion, BBAAA rented out its facility to a certain review center for the conduct of review sessions. The owner of the review center is not a member of the cooperative. Is the rental income of the cooperative taxable?
a. No, income of duly-registered cooperatives are excluded from taxable income (tax-exempt).
b. Yes, only income from credit transactions of the cooperative is tax exempt.
c. Yes, the transaction of the cooperative is not with a member hence, taxable.
d. Answer not given
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