Helpers, Inc., a qualifying 501(c)(3) organization, incurs lobbying expenditures of $363,000 for the taxable year and grass roots expenditures of $0. Exempt purpose expenditures for the taxable year are $2,420,000. Helpers elects to be eligible to make lobbying expenditures on a limited basis. Click here to access Exhibit 23.2.

If required, round your answers to nearest dollar.

a. What is the ceiling amount of lobbying expenditures under the terms of the election? $ __________

b. What is its tax liability as a result of the election? $_____________

Exhibit 23.2 Calculation of Lobbying Nontaxable Amount Exempt Purpose Expenditures Not over $500,000 Over $500,000 but not over $1 million Lobbying Nontaxable Amount Is 20% of exempt purpose expenditures * $100,000 +15% of the excess of exempt purpose expenditures over $500,000 Over $1 million but not over $1.5 million $175,000 + 10% of the excess of exempt purpose expenditures over $1 million Over $1.5 million $225,000 + 5% of the excess of exempt purpose expenditures over $1.5 million