City, Inc., an exempt organization, has included among other amounts the following in calculating net unrelated business income of $500,000. Dividend income $12,000 Interest income 6,000 Royalty income 15,000 Rent income from equipment 25,000 The only expenses incurred associated with these items are rental expenses (which includes depreciation of $10,000) of $15,000. Calculate City, Inc.’s UBTI. Need explanation as to why were adding/subtracting things, or why an item is not included for the computation of UBTI. It's not helpful otherwise. Thanks
City, Inc., an exempt organization, has included among other amounts the following in calculating net unrelated business income of $500,000. Dividend income $12,000 Interest income 6,000 Royalty income 15,000 Rent income from equipment 25,000 The only expenses incurred associated with these items are rental expenses (which includes depreciation of $10,000) of $15,000. Calculate City, Inc.’s UBTI. Need explanation as to why were adding/subtracting things, or why an item is not included for the computation of UBTI. It's not helpful otherwise. Thanks
Chapter23: Exempt Entities
Section: Chapter Questions
Problem 24P
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Question
City, Inc., an exempt organization, has included among other amounts the following in calculating net unrelated business income of $500,000.
Dividend income $12,000
Interest income 6,000
Royalty income 15,000
Rent income from equipment 25,000
The only expenses incurred associated with these items are rental expenses (which includes
Need explanation as to why were adding/subtracting things, or why an item is not included for the computation of UBTI. It's not helpful otherwise. Thanks.
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