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First Americans,Inc

question 110

Essay

First Americans,Inc. ,a § 501(c)(3) organization,operates a museum which depicts the lives of a tribe of Native Americans.It charges an admission fee,but also finances its operations through endowment income,contributions,and gift shop sales.The gift shop is operated by 50 volunteers and the museum is operated by 15 employees.Revenue by source is: Admission fees $700,000 Endowment income 75,000 Gift shop net income 300,000 Contributions 100,000 ​
a.Determine the amount of First Americans' unrelated business income.
b.Determine the amount of First American's unrelated business income tax (UBIT).


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