Maroon, Inc

question 53

Multiple Choice

Maroon, Inc., a tax-exempt organization, leases a building and equipment to Brown Partnership. The rental income from the building is $100,000 and from the equipment is $9,000. Rental expenses are $40,000 for the building and $4,000 for the equipment. What adjustment must be made to net unrelated business income?

• A)$0
• B)($60,000)
• C)($65,000)
• D)($109,000)
• E)Some other amount.

---

Definitions:

Essential Terms

The necessary and fundamental conditions included in a contract that are critical to its enforcement and validity.

Unenforceable

Refers to a contract or clause that, due to legal deficiencies, cannot be executed by a court.

Enforceable Contract

A binding legal agreement between two or more parties that is recognized by the law and has elements of offer, acceptance, consideration, and mutual consent.

Party Against Enforcement

The individual or entity against whom the application of a law, regulation, or contract is sought to be enforced.