Kind, Inc., an exempt organization, leases land, a building, and factory equipment to Shirts Inc. Shirts is a taxable entity that manufactures shirts for distribution through its factory outlet stores. The rent income and the related expenses for Kind are as follows.

a. Calculate the amount of Kind’s unrelated business income.

b. Assume instead that Kind’s rent income and expenses are as follows. Compute unrelated business income.

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Rent Income Land and building Factory equipment $100,000 125,000 Rent Expenses $40,000 25,000 Land and building Factory equipment Rent Income $100,000 125,000 Rent Expenses $20,000 50,000