Question: A contractor contributes services valued at $40,000 to build a new building for a private NFP organization. The net effect of this contribution in the

A contractor contributes services valued at $40,000 to build a new building for a private NFP organization. The net effect of this contribution in the organization's statement of activities is:

A. Increase in expenses and increase in contributions of $40,000; no net effect on net assets. B. $40,000 increase in net assets with donor restrictions. C. Not reported in the statement of activities. D. $40,000 increase in net assets without donor restrictions.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

A contractor contributes services valued at $40,000 to build a new building for a private NFP organization. The net effect of this contribution in the organization's statement of activities is:...

A contractor contributes services valued at $ 1 0 0 , 0 0 0 to build a new building for a private NFP organization. The net effect of this contribution in the organization s statement of activities...

A contractor contributes services valued at $ 4 0 , 0 0 0 to build a new building for a private NFP organization. The net effect of this contribution in the organization s statement of activities is:

1) A private NFP's statement of cash flows presents cash from operating activities using the indirect method. In the reconciliation of the change in net assets to cash from operating activities,...

1) At the beginning of 2020, a private NFP organization receives a donation of equipment with a fair value of $1,000,000 and an estimated useful life of 5 years, no residual value. The donor puts no...

A CPA contributes services valued at $3,000 to provide financial services to a private NFP organization. The net effect of this contribution in the organization's statement of activities is: Select...

Reporting Various Contributions Hopeville Retreat is a private NFP organization that counsels former drug addicts in readjusting to productive community life. Contributions provide the major support...

Please state if net of assets with and without donor restriction increases or decreases in each situation. former drug addicts in readjusting to productive community life. Contributions provide the...

Managerial accounting is changing rapidly as a result of technology and new types of enterprises. Below is an article that states the opposite (Talha et al, 2010). How can we reconcile the two...

(4.2) The relativistic equations studied in Chapter 3 gen- erally predict the the corresponding particles have Land g factor equal to 2. We can explore this for particles of spin using the Dirac...

Sales mix decision dr. Massy, who specializes in internal medicine, wants to analyze his sales mix to find out how the time of his physician assistant, consuela ortiz, can be used to generate the...

Since the COVID - 1 9 pandemic started, volunteer numbers have reduced. Which volunteer segments do you think have been hit hardest and which non - volunteer segment is key to the sector ' s recovery?

41. As the price of a good increases, the change in the quantity demanded can be shown by: moving down along the same demand curve. moving up along the same demand curve shifting the demand curve...

35. The above figure shows four different markets with changes in either the supply curve or the demand curve. Assuming coffee and tea are substitutes, which graph best illustrates the market for tea...

A decade-old study found that the proportion of high school seniors who felt that "getting rich" was an important personal goal was 66%. Suppose that we have reason to believe that this proportion...

Anita's, a fast food chain specializing in hot dogs and garlic fries, keeps track of the proportion of its customers who decide to eat in the restaurant (as opposed to ordering the food "to go"), so...

Shake, Rattle and Roll The Fallin Oil Company (FOC) owns 6 oil-producing wells in a region of Oklahoma that has been beset by a lot of seismic activity (specifically, earthquakes). While the...

A pointer holds a memory address.

4. It is only at this point that you can give the problem your full attention in relation to the various ways you have framed the problem.

1. To provide an insight into why a communication situation can be perceived differently depending on which psychological framework we choose to use.

4. What is the meaning of this statement, we should always demarcate a problem in accordance with our objectives, or with what we are trying to understand? a) Give at least three examples that shed...