A university which is a calendar year Section 501(c)(3) tax-exempt organization, owns and operates an open year-round swimming pool. September through May, the pool is regularly used by the university swim team for practice and competitive events and by university students taking swimming classes offered for academic credit. From June through August, when classes are not in session, the pool is open to the general public.

The university sells both summer memberships and daily admissions to the pool. During the summer, the pool provides a basic concession stand, with snacks, and hires additional part-time lifeguards and concession and ticket stand workers. Although many university students and employees use the pool in the summer, they do not receive discounted admission or memberships.

Use the financial income and expense information provided. Calculate the amount of the university's unrelated business taxable income (UBTI). If the amount is zero, enter a zero. Use whole numbers, and base-allocated amounts, if any, on the number of months.

IRS Form 990-T Unrelated Trade or Business Income
Gross receipts from unrelated business activities
Less: cost of goods sold
Gross profit	$54,000
Deductions directly connected to unrelated business activities:
Salaries and wages
Repairs and maintenance
Taxes and licenses
Depreciation
Employee benefits
Supplies
Total deductions directly connected to unrelated business activities
Unrelated business taxable income before specific deduction

Revenue:

Daily admission fees $35,000

Summer membership fees $16,000

Summer Concession sales $18,000

Interest income (bank account) $600

Total Revenue $69,600

Expenses:

Salaries & wages FT staff $85,000

FT EE benefits $4,700

Summer PT wages $18,000

Repairs & Maintenance $10,000

Taxes & Licenses $5,000

Pool Supplies $6,000

Concession snacks $15,000

Depreciation $12,500

Total Expenses $156,200