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erma4kov [3.2K]
3 years ago
15

On January 1, Read, a nongovernmental not-for-profit entity, received $20,000 and an unconditional promise of $20,000 for each o

f the next four calendar years to be paid on the first day of each year. The present value of an ordinary annuity for four years at a constant interest rate of 8% is 3.312. What amount of net assets with donor restrictions is reported in the year the promise was received?
a. $100,000b. $66,240c. $86,240d. $80,000
Business
1 answer:
insens350 [35]3 years ago
8 0

Answer:

amount of net assets with donor restrictions is $66240

correct option is B $66,240

Explanation:

given data

received = $20000

paid = $20000

interest rate = 8%

interest = 3.312

to find out

What amount of net assets with donor restrictions is reported

solution

we know here contributions received are accounted for at fair value

and fair value is $20000

so   present value of the payments =  $20000 × 3.312

present value of the payments =  $66240

and here Unconditional promises for give cash amounts in the future

ans reported as donor-restricted support,

unless donor clearly intended support to current activities

so amount of net assets with donor restrictions is $66240

and amount $20000 receive on 1st January

increases net assets without donor restrictions

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scZoUnD [109]

Answer:

$5,000 + $350f

Explanation:

The computation of the production cost in dollars is shown

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The start up cost is $5,000

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4 years ago
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6 0
2 years ago
Accounts Receivable from sales to customers amounted to $80,000 and $70,000 at the beginning and end the year, respectively. Inc
Kipish [7]

Answer:

$332,000

Explanation:

<u>Cash flow from operating activities</u>

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