Problem 15-19 (LO. 4) Pigeon, Inc., a 5 501(c)(3) organization, received support from the following sources. $6,300 4,500 Governmental unit A for services rendered Governmental unit B for services rendered Fees from the general public for services rendered (Each payment was of $100) Gross investment income Contributions from disqualified persons Contributions from other than disqualified persons (Each gift was of $50) Total support 75,000 39,000 26,000 160,000 $310,800 a. Regarding the tests for receiving broad public support, compute the following. Enter your amounts as percentages, rounded to one decimal place. External support test: 78.7 % Internal support test: 12.5 Foodha b. Is Pigeon a private foundation? No because Pigeon satisfies both the external and internal tests supported by the public. for being an organization that is broadly Feedback c. Elena Mariez, Pigeon's treasurer, has asked you for advice on whether Pigeon is a private foundation. Complete a letter to Elena in which you address the issue. SWFT, LLP 5191 Natorp Boulevard Mason, OH 45040 February 25, 2022 Ms. Elena Mariez, Treasurer Pigeon, Inc. 250 Bristol Road Phoenix, AZ 85264 Dear Ms. Mariez: As you requested, I have outlined below my findings regarding the question of whether Pigeon, Inc. is a private foundation, For Pigeon not to be classified as a private foundation, it must satisfy both an external support (i.e., broadly supported) test and an internal support test. The total support received by Pigeon is $310,800. To satisfy the external support test, more than one-third V of Pigeon's support normally must come from certain external sources. For Pigeon, this support amount is Thus, the external support test is satisfied To satisfy the internal support test, not more than one-third of Pigeon's support normally must come from the entity's investments. For Pigeon, this includes gross investment income of $ 39,000. Thus, the internal support test is satisfied If I can be of further assistance, please let me know. Sincerely, Sharon Boucher, CPA Partner