Fourth Church Operates a Gift Shop in Its Parish House

Fourth Church operates a gift shop in its parish house.The total income of the church is $900,000.Of this amount, $400,000 comes from offerings and $500,000 comes from the net income of the gift shop.The gift shop operations are conducted by one full-time employee (the manager) and 50 volunteers.None of the volunteers works more than 15 hours per week.Which of the following statements is correct?

A) The $900,000 is unrelated business income.
B) The $500,000 of gift shop net income is unrelated business income.
C) The $400,000 is unrelated business income because the gift shop is a feeder organization.
D) None of the $900,000 is unrelated business income.
E) The unrelated business income tax does not apply to churches.