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Problem 23-24 (LO. 6) Upward and Onward, Inc., a § 501(c)(3) organization that provides training programs for government assistance recipients, reports the following income and expenses from the sale of products associated with the training program. Gross income from sales $425,000 Cost of goods sold 106,000 Advertising and selling expenses 26,000 112,500 Administrative expenses Calculate Upward and Onward's UBIT under the following two assumptions. Assume a tax rate of 21%. If an amount is zero, enter "0". a. If the sale of the training program products is substantially related to Upward and Onward's exempt purpose, then Upward and Onward's unrelated business income tax (UBIT) is $ Feedback ▼Check My Work The unrelated business income tax (UBIT) is designed to treat the entity as if it were subject to the corporate income tax. Thus, the rates that are used are those applicable to a corporate taxpayer. In general, unrelated business income (UBI) is derived from activities not related to the exempt purpose of the exempt organization. b. If the sale of the training program products is not substantially related to Upward and Onward's exempt purpose, then Upward and Onward's UBIT is $

Problem 23-24 (LO. 6) Upward and Onward, Inc., a § 501(c)(3) organization that provides training programs for government assistance recipients, reports the following income and expenses from the sale of products associated with the training program. Gross income from sales $425,000 Cost of goods sold 106,000 Advertising and selling expenses 26,000 112,500 Administrative expenses Calculate Upward and Onward's UBIT under the following two assumptions. Assume a tax rate of 21%. If an amount is zero, enter "0". a. If the sale of the training program products is substantially related to Upward and Onward's exempt purpose, then Upward and Onward's unrelated business income tax (UBIT) is $ Feedback ▼Check My Work The unrelated business income tax (UBIT) is designed to treat the entity as if it were subject to the corporate income tax. Thus, the rates that are used are those applicable to a corporate taxpayer. In general, unrelated business income (UBI) is derived from activities not related to the exempt purpose of the exempt organization. b. If the sale of the training program products is not substantially related to Upward and Onward's exempt purpose, then Upward and Onward's UBIT is $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 23-24 (LO. 6) Upward and Onward, Inc., a § 501(c)(3) organization that provides training programs for government assistance recipients, reports the following income and expenses from the sale of products associated with the training program. Gross income from sales Cost of goods sold $425,000 106,000 Advertising and selling expenses 26,000 112,500 Administrative expenses Calculate Upward and Onward's UBIT under the following two assumptions. Assume a tax rate of 21%. If an amount is zero, enter "0". a. If the sale of the training program products is substantially related to Upward and Onward's exempt purpose, then Upward and Onward's unrelated business income tax (UBIT) is $ Feedback Check My Work The unrelated business income tax (UBIT) is designed to treat the entity as if it were subject to the corporate income tax Thus, the rates that are used are those applicable to a corporate taxpayer. In general, unrelated business income (UBI) is derived from activities not related to the exempt purpose of the exempt organization. b. If the sale of the training program products is not substantially related to Upward and Onward's exempt purpose, then Upward and Onward's UBIT is $
Transcribed Image Text:Problem 23-24 (LO. 6) Upward and Onward, Inc., a § 501(c)(3) organization that provides training programs for government assistance recipients, reports the following income and expenses from the sale of products associated with the training program. Gross income from sales Cost of goods sold $425,000 106,000 Advertising and selling expenses 26,000 112,500 Administrative expenses Calculate Upward and Onward's UBIT under the following two assumptions. Assume a tax rate of 21%. If an amount is zero, enter "0". a. If the sale of the training program products is substantially related to Upward and Onward's exempt purpose, then Upward and Onward's unrelated business income tax (UBIT) is $ Feedback Check My Work The unrelated business income tax (UBIT) is designed to treat the entity as if it were subject to the corporate income tax Thus, the rates that are used are those applicable to a corporate taxpayer. In general, unrelated business income (UBI) is derived from activities not related to the exempt purpose of the exempt organization. b. If the sale of the training program products is not substantially related to Upward and Onward's exempt purpose, then Upward and Onward's UBIT is $
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