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.

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Definitions:

Capital

The financial resources that businesses use to fund their operations and growth.

Closing Process

The final steps in the accounting cycle used to update the financial records for the period's revenues, expenses, and dividends to prepare for the next accounting period.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, illustrating the company's profit or loss.

Income Summary Account

A temporary account used in closing process to transfer the balances of all revenue and expense accounts to Retained Earnings.