Save the Squirrels, Inc., a 501(c)(3) organization that feeds the squirrels in municipal parks, receives a $250,000 contribution from Animal Feed, Inc., a for-profit entity that sells animal feed. In exchange for the contribution, Save the Squirrels will identify Animal Feed as a major supporter in its monthly newsletter.

Assume that there are no related expenses or adjustments and that each scenario below is independent of the other.

Assume a 21% corporate income tax rate. If an amount is zero, enter "0".

a. Complete the statement below that outlines Save the Squirrels' UBIT, assuming it receives no other similar payments.

The $250,000 contribution made by Animal Feed to Save the Squirrels is a qualified corporate sponsorship payment. The payment is not considered unrelated business income. Therefore, Save the Squirrels' UBIT is $.

b. Complete the statement below that outlines Save the Squirrels' UBIT, assuming it agrees to identify Animal Feed as a major supporter and to include a half-page advertisement for Animal Feed products in its monthly newsletter as a result of the contribution.

The $250,000 contribution made by Animal Feed is not a qualified corporate sponsorship payment. The payment is considered unrelated business income. Therefore, Save the Squirrels' UBIT is $.