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

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.

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The net rental income ...

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