Wellness, Inc., a 501(c)(3) organization, makes lobbying expenditures of $340,000 this year. Exempt purpose expenditures were

Question:

Wellness, Inc., a § 501(c)(3) organization, makes lobbying expenditures of $340,000 this year. Exempt purpose expenditures were $600,000 for the first six months of the year and $950,000 for the last six months of the year. Determine the Federal income tax consequences to Wellness if:

a. It does not make the § 501(h) lobbying election.

b. It does make the § 501(h) lobbying election.