With regard to unrelated business income of an exempt
organization, which one of the following statements is true?

If an exempt organization has any unrelated business
income, such organization automatically forfeits its exempt
status for the particular year in which such income
was earned.
When an unrelated trade or business activity results in
a loss, such activity is excluded from the definition of
unrelated business.
If an exempt organization derives income from conducting
bingo games, in a locality where such activity is
legal, and in a state that confines such activity to nonprofit
organizations, then such income is exempt from
the tax on unrelated business income.
Dividends and interest earned by all exempt organizations
always are excluded from the definition of unrelated
business income.

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