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Pearl Inc, a Tax-Exempt Organization, Leases Land, Building, and Machinery to to Purple

Question 133

Essay

Pearl Inc., a tax-exempt organization, leases land, building, and machinery to Purple Partnership for a 5-year period.
The rental income from the land and building is $100,000, with related expenses of $40,000. The rental income from the machinery is $9,000, with related expenses of $3,000. What adjustment must be made to net unrelated business income?

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The net rental income of $66,000 ($60,00...

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