Problem 23-29 (LO. 6) For each of the following organizations, determine its UBTI and any related UBIT. If an amount is zero, enter "0". Assume a 21% corporate income tax rate. a. Connect, Inc., an exempt organization, provides food for the homeless. It operates a thrift store that sells used clothing to the general public. The thrift shop is staffed soley by four salaried employees. All of the clothes it sells are received as contributions. The $100,000 profit generated for the year by the thrift shop is used in Connect's mission of providing food to homeless people. The UBTI is $ and the UBIT is $ b. Small, Inc., an exempt organization, has gross unrelated business income of $900 and unrelated business expenses of $400. The UBTI is $ and the UBIT is $ c. In Care, Inc., is a § 501(c)(3) exempt organization. It owns a convenience store and gas pumps, which it received as a bequest from a patron. The store/gas pumps entity is operated as StopBy, a C corporation. Because StopBy is profitable, In Care hires a manager and several employees to run the entity. For the current year, StopBy's profit is $640,000. All of this amount is distributed by StopBy to In Care to use in carrying out its exempt mission. In Care Inc., is considered a imposed is $ and therefore the UBIT apply. As result, the Federal income tax
Problem 23-29 (LO. 6) For each of the following organizations, determine its UBTI and any related UBIT. If an amount is zero, enter "0". Assume a 21% corporate income tax rate. a. Connect, Inc., an exempt organization, provides food for the homeless. It operates a thrift store that sells used clothing to the general public. The thrift shop is staffed soley by four salaried employees. All of the clothes it sells are received as contributions. The $100,000 profit generated for the year by the thrift shop is used in Connect's mission of providing food to homeless people. The UBTI is $ and the UBIT is $ b. Small, Inc., an exempt organization, has gross unrelated business income of $900 and unrelated business expenses of $400. The UBTI is $ and the UBIT is $ c. In Care, Inc., is a § 501(c)(3) exempt organization. It owns a convenience store and gas pumps, which it received as a bequest from a patron. The store/gas pumps entity is operated as StopBy, a C corporation. Because StopBy is profitable, In Care hires a manager and several employees to run the entity. For the current year, StopBy's profit is $640,000. All of this amount is distributed by StopBy to In Care to use in carrying out its exempt mission. In Care Inc., is considered a imposed is $ and therefore the UBIT apply. As result, the Federal income tax
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Problem 23-29 (LO. 6)
For each of the following organizations, determine its UBTI and any related UBIT.
If an amount is zero, enter "0". Assume a 21% corporate income tax rate.
a. Connect, Inc., an exempt organization, provides food for the homeless. It operates a thrift store that sells used clothing to the general
public. The thrift shop is staffed soley by four salaried employees. All of the clothes it sells are received as contributions. The $100,000
profit generated for the year by the thrift shop is used in Connect's mission of providing food to homeless people.
The UBTI is $
and the UBIT is $
b. Small, Inc., an exempt organization, has gross unrelated business income of $900 and unrelated business expenses of $400.
The UBTI is $
and the UBIT is $
c. In Care, Inc., is a § 501(c)(3) exempt organization. It owns a convenience store and gas pumps, which it received as a bequest from a
patron. The store/gas pumps entity is operated as StopBy, a C corporation. Because StopBy is profitable, In Care hires a manager and
several employees to run the entity. For the current year, StopBy's profit is $640,000. All of this amount is distributed by StopBy to In Care
to use in carrying out its exempt mission.
In Care Inc., is considered a
imposed is $
and therefore the UBIT
apply. As result, the Federal income tax
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education