homework help investment income

timer Asked: Nov 16th, 2014

Question description

gray inc. a private foundation reports the following items of income and deductions.  Gray is not an exempt operating foundation, and it is not eligible for the 1% tax rate. 

interest income       $29,000

rent income             $61,000

dividend income     $15,000

royalty                     $22,000

unrelated business income    $80,000

Rent expense $(26,000)

unrelated business expenses $(12,000)

a. Calculate the net investment income.

b. calculate the tax on net investment income.

c.  what is the purpose of the tax on net investment income?

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