Wish, Inc., a 501(c)(3) organization, pays unreasonable compensation to Renata, the treasurer of Wish. Renata's compensation is $600,000. Assume that reasonable compensation would be $500,000.

a. Apply the rules for intermediate sanctions. Complete the paragraph below that outlines the tax consequences, if any, for Wish, Inc. Wish has engaged in an excess benefit transaction that is subject to excise taxes on the amount of the unreasonable compensation. Under the intermediate sanction rules, they are levied on the disqualified person and on the exempt organization's management .

If an intermediate sanction is applicable to Wish, Inc., what would the amount be? $ ___________

b. Determine any tax consequences for Renata. Renata is a disqualified person . Thus, the first-level excise tax imposed on her would be $___________ . The amount of the second-level tax would be $ .___________