Third Church operates a gift shop in its parish house. The total income of the church is $400,000. Of this amount, $150,000 comes from offerings and $250,000 comes from the net income of the gift shop. The gift shop operations are conducted by six full-time, paid employees. Which of the following statements is correct?

• None of the $400,000 is unrelated business income.

• The $150,000 is unrelated business income because the gift shop is a feeder organization.

• The $250,000 of gift shop net income is unrelated business income.

• The $400,000 is unrelated business income.

• The unrelated business income tax does not apply to churches.