Fact Pattern: Early in Year 2, a nongovernmental not-for-profit entity (NFP) received a $2,000,000 gift. The donor specified that the gift be invested in a permanent endowment, with income restricted to provide speaker fees for a lecture series named for the benefactor. The NFP is permitted to choose suitable investments and is responsible for all other costs associated with initiating and administering this series. Neither the donor's stipulation nor the law addresses gains and losses on this permanent endowment. In Year 2, the investments purchased with the gift earned $50,000 in dividend income. The fair value of the investments increased by $120,000.
Question: 7 The $2 million gift from the benefactor should be recorded in the Year 2 statement of activities as an increase in
Permanently restricted net assets.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Fact Pattern: Early in Year 2, a nongovernmental not-for-profit entity (NFP) received a $2,000,000 gift. The donor specified that the gift ...” in 📗 Social Studies if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The policy section on "reverse migration" in your textbook argues that the first step to domestic immigration reform should be to:
Answers (1)
The nurse is working with a graduate nurse to prepare an intravenous dose of potassium for a patient on a regular medical-surgical unit. Which statement by the graduate nurse reflects a need for further teaching?
Answers (1)
What is (in your opinion) the craziest conspiracy theories out there?
Answers (2)
Explain why trees can be classified as both renewable and nonrenewable resources. In your answer, be sure to define the terms "renewable resource" and "nonrenewable resource." Give examples to support your discussion.
Answers (1)
What is income paid to the owner of land, labor, or capital in return for productive service called? a. currency b. revenue c. factor payment d. opportunity cost
Answers (1)
New Questions in Social Studies
What amendment gives citizens the right to vote regardless of race?
Answers (1)
The actual matter density of the universe, accounting for all of the luminous matter and all of the dark matter known to exist in galaxies and clusters, is what fraction of the critical density?
Answers (1)
Which statement best describes a mixed market economy? Consumer intervention and economic choices is strictly forbidden. The government determines economic choices and makes most of the decisions.
Answers (2)
This editorial cartoon from 1933 is of the opinion that
Answers (2)
Brian is a psychologist. he has his clients sign contracts and gives them "homework," which they must complete and then report the results of these actions to him at the next session. brian's type of therapy would best be described as
Answers (1)