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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

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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a Net investment income is calculated as follows Neither the unrelated bu…View the full answer


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South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts

South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts

ISBN: 9781305399884

39th Edition

Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young

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Posted Date: September 09, 2015 07:05:33
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