Tan, Inc, a Tax-Exempt Organization, Has $65,000 of Net Unrelated Business

question 130

Multiple Choice

Tan, Inc., a tax-exempt organization, has $65,000 of net unrelated business income.Total charitable contributions (all associated with the unrelated trade or business) are $7,500.Assuming that the $7,500 was deducted in calculating net unrelated business income, what is Tan's unrelated business taxable income?

• A)$57,500.
• B)$65,250.
• C)$66,000.
• D)$72,500.
• E)Some other amount.

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Definitions:

Revenue Generated

The total amount of money produced from the sale of goods or services before any costs or expenses are subtracted.

Segment Accounts

The process of dividing a company's customer accounts into groups or segments based on shared characteristics to tailor marketing or sales efforts.

Value Analysis

An investigation that determines the best product for the money.

Wireless Service Provider

A company that offers services for mobile phone users, including voice, messaging, and data services over wireless networks.