(Solution) - Initiate Inc a 501 c 3 organization receives the following revenues -(2025 Original AI-Free Solution)

Paper Details

Initiate, Inc., a § 501(c)(3) organization, receives the following revenues and incurs the following expenses.
Grant from Gates Foundation ........... $ 70,000
Charitable contributions received ........... 625,000
Expenses in carrying out its exempt mission ...... 500,000
Net income before taxes of Landscaping, Inc., a wholly
owned for-profit subsidiary ............ 400,000
Landscaping, Inc., remits all of its after-tax profits each year to Initiate. Calculate the amount of the Federal income tax, if any, for Initiate and for Landscaping.