Swan, Inc, a Tax-Exempt Organization, Leases a Building and Equipment to to ABC

question 122

Multiple Choice

Swan, Inc., a tax-exempt organization, leases a building and equipment to ABC Corporation. The rental income from the building is $240,000 and from the equipment is $18,000. Rental expenses are $150,000 for the building and $16,500 for the equipment. What adjustment must be made to net unrelated business income?

• A) $0.
• B) ($16,500).
• C) ($18,000).
• D) ($91,500).
• E) Some other amount.

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Definitions:

Inflation

The pace at which the universal cost levels of goods and services elevate, shrinking the value of money to buy.

Money Supply

The money supply is the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Unemployment

A situation where individuals who are capable of working and are actively seeking employment are unable to find a job.

Aggregate Demand

Totality of demand for all goods and services in an economy, pegged at a given broad price level for a particular timeframe.