1. Problem 15-22 (Algorithmic) (LO. 5)

   Gray, Inc., a private foundation, reports the following items of income and deductions.

   Problem 15-22 (Algorithmic) (LO. 5)

   Gray, Inc., a private foundation, reports the following items of income and deductions.

   Interest income	$37,500
   Rent income	75,000
   Dividend income	18,750
   Royalty income	28,125
   Unrelated business income	103,125
   Rent expenses	(33,750)
   Unrelated business expenses	(15,000)

   Gray is not eligible for the 1% tax rate on net investment income.

   If required, round your final answers to the nearest dollar.

   a. The net investment income is $.

   b. The tax on net investment income is $.