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Assume a 34% income tax rate. In Care, Inc., is a 501(c)3) exempt organization. It owns a convenience store and gas pumps, which it received
Assume a 34% income tax rate. 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 organized 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. Compute the Federal tax liability.
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