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Calculate Gray tax on net investment income

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Reference no: EM132663655

Problem - Gray, Inc., a private foundation, reports the following items of income and deductions. Gray is not eligible for the 1% tax rate on net investment income.

Interest income $29,000

Rent income 61,000

Dividend income 15,000

Royalty income 22,000

Unrelated business income 80,000

Rent expenses (26,000)

Unrelated business expenses (12,000)

Required -

a. Calculate Gray's net investment income.

b. Calculate Gray's tax on net investment income.

Reference no: EM132663655

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