Problem 23-26 (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 $fill in the blank_ 0 .

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 $_________fill in the blank 58e644fbd052f88_1 . Feedback c. Select from the choices below which one properly expresses part (b) as a Microsoft Excel formula. UBIT=MAX(0,((UBI+NETADJS-1000)*.21))