Riverside, Inc., a qualifying $ 501(c)(3) organization, incurs lobbying expenditures of $100,000 for the taxable year and grass roots expenditures of $43,000. Exempt purpose expenditures for the taxable year are $800,000. Riverside 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 the nearest dollar. Therefore, Riverside is permitted to deduct liability of of lobbying and grass roots expenditures and the election results in a tax Calculation of Lobbying Nontaxable Amount Exhibit 23.2 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 excessof exempt purpose expenditures over $500,000 $175,000 + 10% of the excess of exempt purpose expenditures over $1 million $225,000 + 5% of the excess of exempt purpose expenditures : Over $1 million but not over $1.5 million Over $1.5 million over $1.5 million