The Local Church Operates a Gift Shop in Its Parish

The Local Church operates a gift shop in its parish house.The total income of the church is $800,000.Of this amount, $600,000 comes from offerings and $200,000 comes from the net income of the gift shop.The gift shop operations are conducted equally by three volunteers and seven full-time employees.Which of the following statements is correct?

A) The $800,000 is unrelated business income.
B) The $200,000 of gift shop net income is unrelated business income.
C) The $200,000 is unrelated business income because the gift shop is a feeder organization.
D) None of the $800,000 is unrelated business income.
E) The unrelated business income tax does not apply to churches.