During 2012, Help, Inc., an exempt organization, derived
income of $15,000 from conducting bingo games. Conducting
bingo games is legal in Help’s locality and is confined to exempt
organizations in Help’s state. Which of the following statements
is true regarding this income?

The entire $15,000 is subject to tax at a lower rate than
the corporation income tax rate.
The entire $15,000 is exempt from tax on unrelated
business income.
Only the first $5,000 is exempt from tax on unrelated
business income.
Since Help has unrelated business income, Help automatically
forfeits its exempt status for 2012.