Helpers, Inc., a qualifying organization, incurs lobbying expendi- tures of $250,000 for the taxable year and grass roots expenditures of $0.
Exempt purpose expenditures for the taxable year are $1,200,000. Helpers elects to be eligible to make lobbying expenditures on a limited basis.
a. What amount of lobbying expenditures is Helper allowed to deduct?
b. What is its tax liability as a result of the election?