Problem $25-19($LO$.3)$

Helping Handy, Inc. $("$HHI$")$ is a qualifying $501($c$)(3)$ charity. Mandy, the CEO of the corporation, wants to have a way to predict the lobbying tax HHI can expect to incur each year to help with their cash flow planning. HHI elected $501($h$)$ treatment for lobbying expenditures several years ago.

Mandy provides you with the following quarterly data for this year and tells you that next year exempt purpose expenditures will probably be about $10\%$ higher than this year but lobbying expenditures will be about $25\%$ higher.

She has asked you to construct a spreadsheet that models the organization's exempt purpose and lobbying expenditures and estimate the resulting lobbying tax. Because she is unsure of next year's lobbying expenditures, Mandy also wants to know the percentage increase in HHI's lobbying expenditures that will cause HHI to exceed the ceiling amount.

Lobbying percentage $\%$

Lobbying expenditures $

Lobbying ceiling amount $