The Open Museum is an exempt organization that operates a gift shop. The museum's annual operations budget is $3,200,000. Gift shop sales generate a profit of $900,000. Another $600,000 of investment income is generated by the museum's endowment fund. Both the income from the gift shop and the endowment income are used to support the exempt purpose of the museum. The balance of $1,700,000 required for annual operations is provided through admission fees.
Wayne Davis, a new board member, does not understand why the museum is subject to tax at all, particularly because all of the entity's profits are used in carrying out the mission of the museum. The museum's address is 250 Oak Avenue, Peoria, IL 61625.
Required:
(a) Calculate the amount of unrelated business income.
(b) Assume instead that the endowment income is reinvested in the endowment fund, rather than being used to support annual operations. Calculate the amount of unrelated business income.
(c) As the museum treasurer, write a letter to Wayne explaining the reason for the tax consequences. Mr. Davis's address is 45 Pine Avenue, Peoria, IL61625.

How is the division of labor accomplished?

Peninsula products has just applied for a loan at your bank. when reviewing peninsula's books for the year that just ended, you notice that the firm uses the fair value option for its bonds payable. you also see that the firm recorded a $55,000 debit in its bonds payable account and a $55,000 credit in its unrealized holding gain or loss"income account. over that same period, interest rates decreased by about 0.5 percent. how should this information affect the bank's decision as to whether to grant peninsula a loan? a : the bank should strongly consider giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen an increase in its credit rating over the past year. b : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely the result of the rise in interest rates. c : the bank should hesitate before giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen a decline in its credit rating over the past year. d : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely unrelated to either interest rates or the firm's credit rating.

If you miss two payments on a credit card what is generally the penalty