Upward and Onward, Inc., a5 S501(e)(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.
Upward and Onward, Inc., a5 S501(e)(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.
Chapter16: Multistate Corporate Taxation
Section: Chapter Questions
Problem 35P
Related questions
Question
![Problem 15-24 (LO. 6)
Upward and Onward, Inc., a 5 501(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
Administrative expenses
112,500
Calculate Upward and Onward's UBIT under the following two assumptions. Assume a tax rate of 21%. It 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
Veedack
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 s
X.
Feetk
Check My Work
Incorrect
C. Select from the choices below which one properly expresses part (b) as a Microsoft Excel formula.
UBIT MAX(0,((UBINETADIS+1000)1)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc49831d6-ec90-4028-a4a9-2de76316df7b%2F04638017-ac27-401f-a97d-5553406865e7%2F9slezw8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 15-24 (LO. 6)
Upward and Onward, Inc., a 5 501(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
Administrative expenses
112,500
Calculate Upward and Onward's UBIT under the following two assumptions. Assume a tax rate of 21%. It 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
Veedack
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 s
X.
Feetk
Check My Work
Incorrect
C. Select from the choices below which one properly expresses part (b) as a Microsoft Excel formula.
UBIT MAX(0,((UBINETADIS+1000)1)
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