National Corvette Museum Foundation Inc

“The museum is exempt from income taxes under section 501(c)(3) of the internal revenue code and similar provision of state law. However, the museum is subject to federal income tax on any unrelated business taxable income, which primarily includes income from the rent and administrative services provided to msp and ncmi. Taxes incurred as a result of unrelated business income (ubi) activities are accounted for in accordance with income tax accounting guidance, asc 740, income taxes. The museum files tax returns in u.s. Federal jurisdiction. The museum determines deferred income taxes using the liability or balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense or benefit results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Msp accounts for income taxes in accordance with asc 740, income taxes. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. Tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50% the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management's judgment.”

“In conformity with the practice followed by many museums, several automobiles, styling mules, power plants and corvette documents donated to the museum are not included in the consolidated statements of financial position. The majority of the automobiles on display and in storage at the museum are on loan from corvette enthusiasts and are not included as part of the museum collection. Management believes the museum has the resources and technology to appropriately maintain these artifacts.”

“The museum's collection includes vehicles, clay models, historical memorabilia, magazines, periodicals, videos, sketches, documents, build sheets, and many other items that document and preserve the history of the corvette. Many of these items are available for viewing, for research and for educational purposes.”