Problem $25-32($LO$.6)$

Fish, Inc., an exempt organization, reports unrelated business income of $$500,000($before

any charitable contribution deduction$).$ Fish makes charitable contributions to other

organizations of $$54,000,$ of which $$38,000$ is associated with the unrelated trade or

business.

a$.$ Fish's unrelated business taxable income $($UBTI$)$ is $

b$.$ Select from the choices below which one properly expresses the computation in part $($a$)$

as a Microsoft Excel formula. Use the variable names "UBTI" for unrelated business taxable

income, "UBI$\_$BEFORE" for UBI before the contribution deduction, and "CHAR" for the

amount of charitable contributions before the $10\%$ limit$.$

UBTI$=$UBI$\_$BEFORE$-1000-$MIN$($CHAR$,($UBI$\_$BEFORE$*\mathrm{.}1))vv$

c$.$ Assume instead that the charitable contributions are $$41,000.$ The UBTI is $

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Unrelated business income is generally that derived from the unrelated trade or business,

reduced by the deductions directly connected with the conduct of the unrelated trade or business.