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Problem 15-24 (LO. 6) Upward and Onward, Inc. a $ 501(c)(3) organization that provides training programs for government assistance recipients, reports the following income and

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Problem 15-24 (LO. 6) Upward and Onward, Inc. a $ 501(c)(3) organization that provides training programs for government assistance recipients, reports the following income and expenses from the sale of products associated with the training program Gross income from sales $425,000 Cost of goods sold 106,000 Advertising and selling expenses 26,000 Administrative expenses 112,500 Calculate Upward and Onward's UBIT under the following two assumptions. Assume a tax rate of 21%. If an amount is zero, enter"0" a. If the sale of the training program products is substantially related to Upward and Onward's exempt purpose, then Upward and Onward's unrelated business income tax (UBIT) is 0 Oreck My Work The unrelated business income tax (UBI) is designed to treat the entity as if it 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 (1) is derived from activities not related to the exempt purpose of the exempt organization b. If the sale of the training program products is not substantially related to Upward and Onward's exempt purpose, then Upward and Onward's UBIT is X Check My Work incorrect C. Select from the choices below which one properly expresses part (b) as a Microsoft Excel formula UBIT MAXOXCURIENETADS:1000 M) Problem 15-24 (LO. 6) Upward and Onward, Inc., a 501(c)(3) organization that provides training programs for government assistance recipients, reports the following income and expenses from the sale of products associated with the training program. Gross income from sales $425,000 Cost of goods sold 106,000 Advertising and selling expenses 26,000 Administrative expenses 112,500 Calculate Upward and Onward's UBIT under the following two assumptions. Assume a tax rate of 21%. If an amount is zero, enter "0".

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