This problem was written by Dave Mest of Seton Hall University.
The Dave Health-Care Center (DHCC)was created in 20X0 to provide medical services to low-income residents of Dave
Town. DHCC had the following transaction s during the year:
1. It received a pledge from a donor for $20,000, payable in equal installments of $5,000 per year. The first payment of $5,000 was received in 20X0. This pledge is to support general operations of DHCC (for purposes of this transaction, you m ay ignore time value of money).
2. Expenditures for the year included $2,000 for equipment and $2,500 for supplies. The equipment has a five-year expected life, with no salvage value. DHCC uses the straight-line depreciation method. DHCC can be created using three different potential structures.
These include :
A. Special revenue fund owned and operated by the government of Dave Town.
B. As a n enterprise fund owned and operated by the government of Dave Town.
C. As a not-for- profit corporation owned a nd operated by the "Friends of Dave."

Show what amounts will be recorded as revenues and expenses/expenditures for 20X0 under the three organizational structures listed. Then show how the differences between revenues and expenses/expenditures will be shown in the n et position/net asset portion of the balance sheet.