City, Inc., an exempt organization, has included among other amounts the following in calculating net unrelated business income of $500,000. $$\begin{array} { l r }
\text { Dividend income } & \$ 12,000 \
\text { Interest income } & 6,000 \
\text { Royal ty income } & 15,000 \
\text { Rent income from } & \
\text { equipment } & 25,000
\end{array}$$ The only expenses incurred associated with these items are rental expenses (which includes depreciation of $10,000) of $15,000. Calculate City, Inc.'s UBTI.

Question

City, Inc., an exempt organization, has included among other amounts the following in calculating net unrelated business income of $500,000. $$\begin{array} { l r } 
\text { Dividend income } & \$ 12,000 \
\text { Interest income } & 6,000 \
\text { Royal ty income } & 15,000 \
\text { Rent income from } & \
\text { equipment } & 25,000
\end{array}$$ The only expenses incurred associated with these items are rental expenses (which includes depreciation of $10,000) of $15,000. Calculate City, Inc.'s UBTI.

Quizplus · Accepted Answer

The Answer of City, Inc., an exempt organization, has included among other amounts the following in calculating net unrelated business income of $500,000. $$\begin{array} { l r } 
\text { Dividend income } & \$ 12,000 \
\text { Interest income } & 6,000 \
\text { Royal ty income } & 15,000 \
\text { Rent income from } & \
\text { equipment } & 25,000
\end{array}$$ The only expenses incurred associated with these items are rental expenses (which includes depreciation of $10,000) of $15,000. Calculate City, Inc.'s UBTI.

City, Inc, an Exempt Organization, Has Included Among Other Amounts the the Following