Question

On January 1, Cleaner Water, Inc., a nongovernmental not-for-profit organization, received $20,000 and an unconditional pledge of $20,000 for each of the next four calendar years to be paid on the last 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 is with donor restrictions reported in the year the pledge was received

Answer 1

Answer:

$66,240

Explanation:

Calculation to determine what amount of net assets is with donor restrictions reported in the year the pledge was received

Using this formula

Net Assets=Unconditional pledge amount *Present value of an ordinary annuity

Let plug in the formula

Net Assets=$20,000*3.312

Net Assets=$66,240

Therefore what amount of net assets is with donor restrictions reported in the year the pledge was received will be $66,240