Which of the Following Is One of the Requirements That

question 82

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 sold 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.

---

Definitions:

Asset Account

An account that represents a resource owned or controlled by a company that is expected to provide future economic benefits.

Consumed

Used up or exhausted, particularly in reference to resources or goods.

Liability

A financial obligation or amount owed by a business to creditors, typically reflected on the balance sheet.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may not coincide with the calendar year.