Problem $23-22($L$0.5)$

The Board of Directors of Teton Pearl, Inc., a private foundation, consists of Charlyne, Beth, and Carlos. They vote unanimously to provide a $$500,000$ grant to Carlos. The grant is to be used for travel and education and does not qualify as a permitted grant to individuals $($i$.$e$.,$ it is an act of self$-$dealing$).$

If an amount is zero, enter $"0".$

a$.$ The initial tax imposed on Teton Pearl is $ $x$ and on Carlos is $

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In general, a private foundation is exempt from Federal income tax. However, because a private foundation is usually not a broadly, public supported organization, it may be subject to several Federal excise taxes.

b$.$ The initial tax imposed on the foundation managers $($the Board of Directors$)$ is $

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Incorrect

c$.$ Select from the choices below which one properly expresses the computation in part $($b$)$ as a Microsoft Excel formula. MGRINITAX$=$MIN $,$ SELFDEALAMT$*\mathrm{.}05)$