For each of the following organizations, determine its UBTI and any related UBIT.

If an amount is zero, enter $"0".$ Assume a $21\%$ corporate income tax rate.

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a$.$ Connect, Inc., an exempt organization, provides food for the homeless. It operates a thrift store that sells used clothing to the general public. The thrift shop is staffed soley by four salaried employees. All of the clothes it sells are received as contributions. The $$100,000$ profit generated for the year by the thrift shop is used in Connect's mission of providing food to homeless people.

The UBTI is $fill in the blank $7$b$65$f$5011$ff$202$d$\_1$

$0$

and the UBIT is $fill in the blank $7$b$65$f$5011$ff$202$d$\_2$

$0$

$.$

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The unrelated business income tax $($UBIT$)$ is designed to treat the charitable entities as if they 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.

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b$.$ Small, Inc., an exempt organization, has gross unrelated business income of $$900$ and unrelated business expenses of $$400.$

The UBTI is $fill in the blank $3$e$57$daf$7$dfc$2020\_1$

and the UBIT is $fill in the blank $3$e$57$daf$7$dfc$2020\_2$

$.$

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c$.$ 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 operated 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 purpose.

In Care Inc., is considered a

feeder organization

and therefore the UBIT

does not

apply. As result, the Federal income tax imposed is $fill in the blank $0$ae$735$ff$9$fef$045\_3$

$.$