Davis, an officer for a § 501(c)(3) organization, receives benefits that are inap- propriate in the context of a charitable entity. The excess benefits are deter- mined to be $35,000. Davis does not pay back the organization the excess amount before the first-level tax is due.
a. What amount of first-level taxes are imposed on Davis? On the exempt organi- zation management?
b. What amount of second-level taxes are imposed on Davis?