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

question 78

Multiple Choice

Swan,Inc. ,a tax-exempt organization,leases a building and equipment to ABC Corporation.The rental income from the building is $160,000 and from the equipment is $12,000.Rental expenses are $100,000 for the building and $11,000 for the equipment.What adjustment must be made to net unrelated business income?

• A)$0.
• B)($11,000).
• C)($12,000).
• D)($61,000).
• E)Some other amount.

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Definitions:

Recorded

The act of entering financial transactions into the accounting records of a company.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made, used to prepare financial statements.

Posting

The process of transferring journal entries to their respective accounts in the ledger, facilitating the organization and tracking of financial data.

Financial Statements

Formal reports of the financial activities and condition of a business, individual, or other entity.