Wonder, Inc., a § 501(c)(3) exempt organization, acquired all the stock of a forprofit corporation for $100,000. Wonder is a private foundation. The acquired corporation was not a related business. Calculate the tax on excess business holdings. Assume that corrective action is taken so that the additional tax does not apply.

Question

Wonder, Inc., a § 501(c)(3) exempt organization, acquired all the stock of a for­profit corporation for $100,000. Wonder is a private foundation. The acquired corporation was not a related business. Calculate the tax on excess business holdings. Assume that corrective action is taken so that the additional tax does not apply.

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The Answer of Wonder, Inc., a § 501(c)(3) exempt organization, acquired all the stock of a for­profit corporation for $100,000. Wonder is a private foundation. The acquired corporation was not a related business. Calculate the tax on excess business holdings. Assume that corrective action is taken so that the additional tax does not apply.