During Year 1, Help Others, Inc., an exempt organization, derived income of $15,000 from conducting bingo games. Conducting bingo games is legal in Help Others' locality and is confined to exempt organizations in Help Others' state. Which of the following statements is true regarding this income?
| a. | The entire $15,000 is subject to tax at a lower rate than the corporate income tax rate. | | b. | Only the first $5,000 is exempt from tax on unrelated business income. | | c. | The entire $15,000 is exempt from tax on unrelated business income. | | d. | Because Help Others, Inc. has unrelated business income; it automatically forfeits its exempt status for Year 1. |
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