Which of the Following Is One of the Requirements That

question 57

Multiple Choice

Which of the following is one of the requirements that will enable mortgaged land acquired by an exempt organization for later exempt use to be excluded from debt-financed property, for purposes of the unrelated business income tax?

• A)The principal purpose of acquiring the land is for investment.
• B)The land is used within ten years of the acquisition date in the organization's exempt purpose.
• C)The land is located in the United States.
• D)Only a.and b.
• E)None of the above.

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Definitions:

Property, Plant, Equipment

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the short term.

Accumulated Depreciation

Accumulated depreciation is the total amount of depreciation expense that has been recorded against a company's assets over time.

Expense Account

An account in financial accounting that represents costs incurred by a company during a period, not directly tied to the production of goods or services.

Equipment Account

An account where the cost of purchased equipment is recorded, reflecting the total value of equipment owned by a business.