Exercise 23-13 (a) (LO. 3) Marsh, Inc., a qualifying $ 501(c)(3) organization, incurs lobbying expenditures of $400,000 for the taxable year and grass roots expenditures of $50,000. Exempt purpose expenditures for the taxable year are $1,100,000. Marsh elects to make lobbying expenditures on a limited basis. Click here to access Exhibit 23.2. Therefore, Marsh is permitted to deduct $ X of lobbying and grass roots expenditures and the election results in a tax liability of $ |X. Exhibit 23.2 Calculation of Lobbying Nontaxable Amount Exempt Purpose Expenditures Not over $500,000 Over $500,000 but not over $1 million Lobbying Nontaxable Amount Is 20% of exempt purpose expenditures * $100,000 +15% of the excess of exempt purpose expenditures over $500,000 $175,000 + 10% of the excess of exempt purpose expenditures over $1 million $225,000 + 5% of the excess of exempt purpose expenditures over $1.5 million Over $1 million but not over $1.5 million Over $1.5 million