Step $1$

Little Kindnesses Inc., a tax$-$exempt charity with unrelated business taxable income of

$,$ faces a corporate tax rate of

The objective is to compute the tax due on this income, a crucial financial consideration for tax$-$exempt organizations engaging in unrelated business activities.

Given:

Little Kindnesses Inc. has

in unrelated business taxable income.

Objective:

Calculate the tax amount owed on the unrelated business taxable income.

$1$st step:

The task involves applying the corporate tax rate to the unrelated business taxable income, thereby determining the financial impact and tax liability for the tax$-$exempt charity. Understanding this calculation is essential for compliance and financial planning.

Step $2$

The tax on unrelated business taxable income for a tax$-$exempt charity like Little Kindnesses Inc. is calculated using the corporate tax rates. As of last knowledge update in January

$,$ the corporate tax rate for unrelated business income is

To calculate the tax due:

Therefore, the correct answer is:

$1$st step:

Little Kindnesses Inc., a tax$-$exempt charity, owes

in tax on its

unrelated business taxable income, calculated at the corporate tax rate of

Answer

Little Kindnesses Inc., with

unrelated business taxable income, owes

in taxes at a

corporate tax rate. The tax is due to its unrelated business activities.