Gray, Inc., a private foundation, reports the following items of income and deductions. Gray is not an exempt operating foundation, and it is not eligible for the 1% tax rate.
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Interest income
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$ 29,000
|
|
Rent income
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61,000
|
|
Dividend income
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15,000
|
|
Royalty income
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22,000
|
|
Unrelated business income
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80,000
|
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Rent expenses
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(26,000)
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Unrelated business expenses
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(12,000)
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a. Calculate Gray's net investment income.
b. Calculate Gray's tax on net investment income.