Links, Inc

question 78

Essay

Links, Inc., an exempt organization whose mission is to aid marriages threatened by golf, contributes $100,000 to Couples, Inc., an exempt organization which provides counseling to dysfunctional marriages. Links, Inc., has net UBTI (excluding any modifications associated with charitable contributions) of $800,000. Assuming that the $100,000 contribution has been deducted in calculating net UBTI, determine the amount of any further adjustment in calculating UBTI.

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Definitions:

Economy

The system of production, consumption, and distribution of goods and services in a particular geographic region or country.

Production Possibility Frontier

A chart representing the ultimate production possibilities of two items, given certain inputs and the current state of technology.

Unemployment

A situation in which individuals who are capable of working and are actively seeking work are unable to find employment.

Inefficiency

The failure to use resources in the most cost-effective manner, often leading to wasted potential output.