City, Inc., an exempt organization, has included among other amounts the following in calculating net unrelated business income of $500,000. Dividend income $12,000 Interest income 6,000 Royalty income 15,000 Rent income from equipment 25,000 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. Need explanation as to why were adding/subtracting things, or why an item is not included for the computation of UBTI. It's not helpful otherwise. Thanks

City, Inc., an exempt organization, has included among other amounts the following in calculating net unrelated business income of $500,000. Dividend income $12,000 Interest income 6,000 Royalty income 15,000 Rent income from equipment 25,000 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. Need explanation as to why were adding/subtracting things, or why an item is not included for the computation of UBTI. It's not helpful otherwise. Thanks

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter23: Exempt Entities

Section: Chapter Questions

Problem 24P

See similar textbooks

Related questions

Q: YORMS Corp has the following data for the year ended December 31, 2021:…

A: The corporate tax rates apply to gross revenue obtained from sources within the Philippines for…

Q: Required information [The following information applies to the questions displayed below.] Julio and…

A: Answer:- Ordinary income refers to the regular and recurring income that a taxpayer receives from…

Q: 1. BATO Corp has the following data for the year ended December 31, 2021:…

A: As per our protocol we provide solutions to only one question but as you have asked multiple…

Q: The current liabilities section of the statement of financial position of HOPE CORP. as of December…

A: Current Liabilities: Current liabilities are a company's short-term financial commitments that are…

Q: perating income from a business vidend income, all from U.S. corporations 0% tax rate) cerest…

A: Taxable income refers to an amount to be charged on the revenue earned by the company after…

Q: When the components of income tax expense are disclosed on the income statement or footnotes, what…

A: Deferred Tax:Deferred Tax Liability (DTL) or Deferred Tax Asset (DTA) forms an important part of…

Q: The Income Statement of the ABC Corporation in Puerto Rico, prepared on a tax basis, presents the…

A: Taxable income is the amount of income computed to measure the amount of taxes to be paid to the…

Q: a.How much interest expense can CL deduct? b.How is the interest expense reported on CL’s Schedule…

A: Hi student Since there are multiple subparts, we will answer only first three sub parts. Given…

Q: (me lollowing imic mation applies to thie questions displayed Bourne Guitars, a corporation,…

A: Given, Current §1231 gain=$232,000 Nonrecaptured net §1231 losses=$58,500

Q: Required: Calculate the company’s taxable income for the year after considering some adjustments…

A: The question provides information about outstanding expenses for Thamaga (Pvt) Ltd as of June 30,…

Q: Required: Compute SEP's taxable income. Note: Amounts to be deducted shoul

A: Taxable income is the part of your gross income that is used to determine how much tax you will owe…

Q: The following items of gross income are exempted from taxation, except: A.Revenues of a non-stock…

A: Analysis of Option Option A: Incorrect Reason: Non profit organisation: These are the…

Q: EMC began operations during 2004. Taxable income in 2005 was $829,000. Basis differences as of…

A: Temporary Difference is nothing but difference between Carrying amount of Assets and its tax basis.

Q: Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line…

A: Based on the information provided in the problem, this question falls under the topic of tax…

Q: Fallow Corporation is subject to tax only in State X. Fallow generated the following income and…

A: State income tax base refers to the taxable income considering the value of income, properties, and…

Question

City, Inc., an exempt organization, has included among other amounts the following in calculating net unrelated business income of $500,000.

Dividend income $12,000

Interest income 6,000

Royalty income 15,000

Rent income from equipment 25,000

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.

Need explanation as to why were adding/subtracting things, or why an item is not included for the computation of UBTI. It's not helpful otherwise. Thanks.

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

FGH Corporation had the following in 2021: Sales P 3.4M; Cost of sales P 1.2M; Admin expense P 0.3M; Selling expenses P .5M; other taxable income from operations P .1M. What is deductible expense if the company uses OSD?* a. 920,000 b. 1,360,000 c. 880,000 d. 800,000 Using the problem above, what is the income tax payable?* a. 330,000 b. 375,000 c. 575,000 d. 525,000
P
A Corp., a domestic corporation, has the following data in 2022:Gross receipts from services, P800,000Cost of services, P200,000Long term capital gain, P15,000Short term capital loss, P5,000Dividend from a domestic corporation, P15,000Interest income from bank deposits, P10,000Operating expenses, P120,000Compute the optional standard deduction. a. P366,000 b. P364,500 c. P280,000 d. P244,000
Determine the amount of taxable income and separately stated items in each of the cases below. Assuming the corporation is a Subchapter S corporation. Ignore any carryforward items. Required: a. Corporate financial statement: net income of $53,000 including tax expense of $15,400, charitable contributions of $3,000, and depreciation expense of $37,600. Depreciation expense for tax purposes is $46,640.
The following financial statements relate to Inna Projects Limited:Statement of Comprehensive Income for the year ended 30 June 2018R’000Sales (Credit)8 000Cost of sales2 000Gross profit6 000Operating expenses2 800Operating profit3 200Interest expense220Profit before tax2 980Tax (25%)745Profit after tax2 235Statement of Financial Position as at 30 June 2018ASSETSR’000R’000Non-current assets45 320Current assets13 980Inventory5 080Debtors7 600Bank1 30059 300EQUITY AND LIABILITIESOwners’ equity54 040Capital39 000Retained income15 040Non-current assets3 000Current liabilities2 260Creditors2 26059 300Note: Inventory on 1 July 2017 amounted R3 000 000.Required:Calculate the following ratios and where applicable round off answers correctly to two decimal places:2.1 Gross margin (5)2.2 Inventory turnover (5)2.3 Debtors collection period (5)2.4 Return on own capital (5)2.5 Acid test ratio (5
Please put all of the necessary information and computations for better understanding. Thank You ☺️
Hansen Corporation. a C Corporation (mot a manufacturer) reports the following items in income and expenses for 2021 Gross Revenue $900,000 Dividend Received from 30% owned Corp 200,000 LTCG 30,000 STCL 12000 City of Lee's Summit Bond Interest 10000 COGS 375000 Administrative Expenses 325000 Charitable Contribution 60,000 Compute Hansen's C Corp Taxable income? a. 246,200 b. 276200 c. 275000
Kamulinda Company Limited (KCL) has provided the following financial information that relates to the year ended 31 December 2020: Statement of profit or loss Sales revenue Cost of sales Gross profit Administrative costs Distribution costs Operating profit Interest received Interest paid Profit before tax Taxation Profit after tax Shs '000' Assets: Non-current assets Accumulated depreciation Netbook value Investments Current assets: Inventory 250,400 (87,900) 162,500 (35,000) (50,000) 77,500 45,000 Shs '000' (25,000) 97,500 (20,000) 77,500 Statement of position as at 31 December: 2020 2019 Shs '000' Shs '000' 459,000 246,000 (125,000) (89,000) 334,000 157,000 76,000 156,000 100,000 Find current assets continued- Accounts receivable Cash at hand Cash at bank Total assets Equity and liabilities: Share capital Share premium Retained earnings Revaluation Non-current liabilities: Long term loan Current liabilities: Accounts payable Interest payable Tax Bank overdraft 24,450 65,000 655,450…
amount. An entity reported the following data for the current year. What net amount in OCI that may not be recycled to profit or loss? * Net sales Cost of goods sold Selling expenses Administrative expenses P9.500,000 4,000,000 1,000,000 1,200,000 Interest expense 700,000 Gain from expropriation of land 500,000 Income tax 800,000 Income from discontinued operations Unrealized gain on equity investment at FVOCI Unrealized loss on futures contract designated as a cash flow hedge Increase in projected benefit obligation due to actuarial assumptions Foreign translation adjustment- debit Revaluation surplus 600,000 900,000 400,000 300,000 100,000 2,500,000
I need to know how to solve the question.
Beckett Corporation has nexus with States A and B. Apportionable income for the year totals $1,185,000. Beckett's apportionment factors for the year use the following data. State A State B Totals Sales $1,422,000 $853,200 $2,275,200 Property $237,000 $0 $237,000 Payroll $355,500 $0 $355,500 State B uses a three factor apportionment formula with a double-weighted sales factor. Do not round any division. Round your final answer to the nearest dollar. Compute Beckett's B taxable income for the year? $fill in the blank 1
Subject: accounting