Unrelated Business Income Tax Is an Excise Tax, Applied to the Gross

question 147

True/False

Unrelated Business Income Tax is an excise tax, applied to the gross receipts of a business activity. Therefore allocations of expenses incurred in generating the income are irrelevant.

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Definitions:

Inventory

Inventory refers to the total amount of goods and materials held by a business for the purpose of resale or production.

Slope-intercept Form

An equation of a straight line in the format y = mx + b, where m is the slope and b is the y-intercept.

Slope

The measure of the steepness of a line on a graph, defined as the ratio of the vertical change to the horizontal change between two points on the line.

General Form

A way of expressing something that is not specific to any particular case but can apply broadly across instances.