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What Is the Purpose of the Unrelated Business Income Tax

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What is the purpose of the unrelated business income tax?


Definitions:

Future Cash Flows

Projections of cash revenues minus cash expenses, representing the amount of money a company expects to receive or pay out over a specific period.

Capital Lease

A lease agreement in which the lessee essentially buys an asset and pays for it over time, classifying the lease as a financial transaction in the balance sheet.

Operating Lease

A contract that allows for the use of an asset but does not convey rights of ownership of the asset.

Assets And Liabilities

Represent the resources a company owns or controls (assets) and the obligations it owes to outsiders (liabilities).

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