Calculate the effect of the equipment lease

Reference no: EM13130907

Tranquility, Inc., an exempt organization, leases factory equipment to Blouses, Inc. Blouses is a taxable entity that manufactures women's clothing for distribution through upscale department stores. Blouses own the land and building where it conducts its manufacturing operations. The original cost of the building to Blouses was $800000, and the cost recovery deduction for the current year is $20512. Rent income to Tranquility for the factory's equipment is $300000, and the related expenses are $170000. Calculate the effect of the equipment lease on Tranquility's unrelated business taxable income.

Reference no: EM13130907

Questions Cloud

Determine the average waiting time : John Ballard works eight hours a day, five days a week. Each order is one window and each window takes 26 minutes. What is the average waiting time, in minutes?

What will her retirement account be worth at the end : After completing her residency, an obstetrician plans to invest $10,000 per year at the end of each year in a low-risk retirement account. She expects to earn five percent for 35 years. What will her retirement account be worth at the end of these..

What is approximate value of inventory that was destroyed : From January 1 through the time of the fire, the company made purchases of $330,000 and had sales of $720,000. Assuming the rate of gross profit to selling price is 40%, what is approximate value of the inventory that was destroyed?

Compute concentrations of oh and the ph : Calculate concentrations of OH- and the pH of each basic solution. Since NaOH donates on OH- ion for each NaOH molecule, the OH- concentration is equivalent to the NaOH molarity. The pOH is calculated as -log[OH-] and the pH is calculated as 14-pO..

Calculate the effect of the equipment lease : Tranquility, Inc., an exempt organization, leases factory equipment to Blouses, Inc. Blouses is a taxable entity that manufactures women's clothing for distribution through upscale department stores.

Reducing fractions with variable and constant : A step-by-step example on multiplying and reducing fractions with variable and constant terms. Multiply. Write answer in lowest terms.

Illustrate what amounts should bbc record for the bonds : BBC incurred $200,000 in accounting fees and $50,000 in banking fees related to this transaction. Illustrate what amounts should BBC record for the bonds upon issuance using US GAAP and IFRS?

Calculate the initial tax imposed on black pearl : The board of directors of BLACK Pearl, Inc., a private foundation, consists of Alice, Beth, and Carlos. They vote unanimously to provide a $250000 grant to Mark, their business associate.

Gradient-fraction and sampling word problems : Bear population. To estimate the size of the bear population on the Keweenaw Peninsula, conservationists captured, tagged, and released 50 bears.

User Account

All Pages