Sierra-Nevada Christian Music Association Inc

“Total purchase price of all radio broadcast equipment was $181,307”

“Total purchase was reduced by 1) a non-cash credit of $26,290 (per a prior agreement) and 2) for buyer taking on seller's debt owed in the amount of $45,017 ($26,824 + $18,193). Capitalized fixed assets, net of depreciation was $36,531 ($26,290 + $45,017 + $36,531 = $ 107,838).”

“Gain on sale of assets was the result of sale proceeds of $110,000 less capitalized fixed assets, net of depreciation of $36,531 ($110,000 - $36,531 = $73,469)”

“Time brokerage agreement income $3,750; non-cash trade with Indian Paiute Tribe (no profit intent) to use their mobile home for studio space $921.”

“Accrual of interest (non-cash) $22,042; interest paid (cash) $89; depreciation $218; supplies & misc $1,124.”

“Adjustments of earlier activity: write-off accrued debt unable to pay (accrued interest $2,637,424, accrued lease payable $179,493, principal debt past statute of limitations or paid by buyer $141,848, write-off noncollectable refundable deposit $445, write-off noncollectable accounts & contributions receivable $8,650 ($2,637,424 + $179,493 + $141,848 - $445 - $8,650 = $2,949,670)”

“Dissolution of nonprofit corporation. Paid final expenses and as much debt as possible (remaining cash = $0).”

“Dissolution of nonprofit. Sale of all broadcast equipment ($0 ending balance)”

“Dissolution of nonprofit. Settlement or write-off of all debt. See details on Schedule O for Part I, Line 20 for additional information”

“Dissolution of nonprofit. Settlement or write-off of all debt. See details on Schedule O for Part I, Line 20 for additional information”

“All broadcasting assets were sold 20 days after the prior fiscal year end and buyer was airing their programming 100% of the time during this 20 day period”

“Victor Lawrence is a blind Board Member who did not work during the accounting period since the buyer of the broadcast equipment aired their programming 100% of the time for the 20 day period after the beginning of the fiscal year when all assets were sold. Although Mr. Lawrence did not work any part-time hours, as he had in the past, he continued to receive his normal pay and was paid a six month severance on June 23, 2021 (his normal pay was $216.66 two times per month and his severance pay was $2,599.92). Total paid to Mr. Lawrence from the beginning of the fiscal year (May 1, 2021) was two regular checks in May, two regular checks in June ($216.66 X 4) plus his severance pay of $2,599.92 on June 23, 2021 ($216.66 X 4 + $2,599.92 = $3,466.56). The average hours per week noted for each Board member was based on estimated total volunteer hours performed from May 1, 2021 through March 31, 2022 divided by 11 months. Mr. Hutchins, the Corporate Treasurer, was authorized by the Board of Directors to finalize the sale (by working with the attorney and buyer) and wrap-up all financial and other dissolution affairs (final expenses, debt issues, bookkeeping, accounting, notices to government agencies, etc.) which is why he had the wide majority of volunteer hours, as compared to the other Board members, for this accounting period.”

“According to 26 USC 513(a) the term unrelated trade or business (UTB) does not include any trade or business in which substantially all the work in carrying on such trade or business is performed for the organization without compensation. As a result, the time brokerage income and non-cash (no-profit intent) trade with the Indian Paiute Tribe are not considered UTB income. In addition, net income from said revenue is a net loss.”