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Question - First American, Inc., a § 501(c)(3) organization, operates a museum that 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. The entity's revenue by source is:
Admission fees $700,000
Endowment income 75,000
Gift shop net income 300,000
Contributions 100,000
Required -
A. Determine the amount of the organization's unrelated business income.
B. Determine the amount of the organization's unrelated business income tax.
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