Newseum Inc

“The company acquires its collections, which include various historical documents and artifacts, primarily by donation or loan, as well as occasional purchases. All collections are held for public exhibition, education, or research. Each of the items is catalogued, preserved, and cared for, and activities verifying their existence and assessing their condition are performed continuously. The collections are not recognized as assets in the accompanying consolidated statements of financial position. Purchases of collection items are recorded as decreases in unrestricted net assets in the year in which the items are acquired, or as temporarily or permanently restricted net assets if the assets used to purchase the items are restricted by donors. Contributed collection items are not reflected on the financial statements. Proceeds from deaccessions or insurance recoveries are reflected as increases in the appropriate net asset classes.”

“Under the asset and liability method of FASB ASC Topic Income Taxes, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under FASB ASC Topic Income Taxes, the effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. As of December 31, 2013, the Company had a deferred tax asset of approximately $214,000 related to temporary differences in taxable rental income. There was no allowance booked against the deferred tax asset as of December 31, 2013, as the Company believes it is certain that the future tax benefit will be realized. The deferred tax asset is included with prepaid expenses and other assets in the accompanying consolidated statement of financial position. FASB ASC Topic Income Taxes provides authoritative guidance relating to accounting for uncertainty in income taxes. These provisions provide consistent guidance for the accounting for uncertainty in income taxes recognized in an entity's consolidated financial statements and prescribe a threshold of "more likely than not" for recognition and derecognition of tax positions taken or expected to be taken in a tax return. The Company performed an evaluation of uncertain tax positions for the year ended December 31, 2013, and determined that there were no matters that would require recognition in the consolidated financial statements or that may have any effect on its tax-exempt status. As of December 31, 2013, the statute of limitations for tax years 2010 through 2012 remains open with the U.S. federal jurisdiction or the various states and local jurisdictions in which the Company files tax returns. It is the Company's policy to recognize interest and/or penalties related to uncertain tax positions, if any, in income tax expense.”

“All collections are held for public exhibition, education, or research.”

“Expense included as revenue on financial statement $56,999 Loss on Uncollectibles $26,394 Part XI, Line 4b Advance Rental Income $538,715”

“Revenue included as expense on Financial Statement $56,999”