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.