Tax Drill $-$ Support Tests

Rexco Inc., a $501($c$)(3)$ organization, received a total of $$120,000$ in support during the taxable year from the following:

Governmental unit A for services rendered: $$50,000$

General public for services rendered: $$15,000$

Contributions from individual substantial contributors $($disqualified persons$)$: $$40,000$

Gross investment income: $$10,000$

Unrelated business taxable income minus the related tax: $$5,000$

Because Rexco. $$ : satisfy the external support and $$ satisfy the internal support test, it

$$ qualify as an organization that is broadly supported. Therefore, Rexco $$ a private foundation.