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.

---

Definitions:

Positively Related

A relationship where an increase in one variable leads to an increase in another.

Negatively Related

Describes a relationship where an increase in one variable leads to a decrease in another variable.

Unrelated

Not connected or associated with each other in any way.

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.