In United Together’s statement of activities for the year ended December 31, 20X2, what amount should it report under the classification of program services?

a. $500,000

b. $550,000

c. $600,000

d. $850,000 United Together, a labor union, had the following receipts and expenses for the year ended December 31, 20X2:

The union’s constitution provides that 10 percent of the per capita dues be designated for the strike insurance fund to be distributed for strike relief at the discretion of the union’s executive board.

Transcribed Image Text:

Receipts: Per capita dues $680,000 Initiation fees 90,000 Sales of organizational supplies 60,000 Nonexpendable gift restricted by donor for loan purposes for 10 years 30,000 Nonexpendable gift restricted by donor for loan purposes in perpetuity 25,000 Expenses: Labor negotiations Fund-Raising Membership development Administrative and general 500,000 100,000 50,000 200,000