Calculate the amount of the Federal income tax

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Problem - Initiate, Inc., a § 501(c)(3) organization, receives the following revenues and incurs the following expenses.

Grant from Bill and Melinda Gates Foundation $ 70,000

Charitable contributions received 625,000

Expenses in carrying out its exempt mission 500,000

Net income before taxes of Landscaping, Inc., a wholly owned for-profit subsidiary 400,000

Landscaping, Inc., remits all of its after-tax profits each year to Initiate. Calculate the amount of the Federal income tax, if any, for Initiate and for Landscaping.

Reference no: EM132663647

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