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 $ __________ of lobbying and grass roots expenditures and the election results in a tax liability of $ _________

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