Upward and Onward, Inc., a § 501(c)(3) organization that provides training programs for welfare recipients, reports the following income and expenses from the sale of products associated with the training program.Gross income from sales$425,000Cost of goods sold106,000Advertising and selling expenses26,000Administrative expenses112,500 Calculate Upward and Onward's UBIT under the following two assumptions. Assume a tax rate of 21%. If an amount is zero, enter "0". 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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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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Upward and Onward, Inc., a § 501(c)(3) organization that provides training programs for welfare 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
Administrative expenses	112,500

Calculate Upward and Onward's UBIT under the following two assumptions. Assume a tax rate of 21%. If an amount is zero, enter "0".

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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