Davis, an officer for a 501(c)(3) organization, receives benefits that are inappropriate in the context of a charitable entity, in the form of an overly generous health insurance plan. The excess benefits are determined to be $35,000. Davis does not pay back the excess benefits to the organization before the first-level tax is due.

a. Apply the rules for intermediate sanctions. The first-level taxes imposed are as follows: On the exempt organization management: $ On Davis: $.

b. A second-level tax in the amount of $ is imposed on Davis.