Question: Gray, Inc., a private foundation, reports the following items of income and deductions. Gray is not an exempt operating foundation, and it is not eligible

Gray, Inc., a private foundation, reports the following items of income and deductions. Gray is not an exempt operating foundation, and it is not eligible for the 1% tax rate.

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)

a. Calculate Gray’s net investment income.

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

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