Arthur Corporation gave a not-for-profit research foundation $500,000 to conduct research relating to the development of a new type of battery. Per the terms of the gift, Arthur owned the right to any patents issued as a consequence of the research.

For the independent situation above:

a) First choose the appropriate type of contribution listed in the table below by filling in the letter found in the blank under Type of Contribution. Note that there may be situations that are not contributions, in that case choose H.

A. Contribution of Assets-with donor restrictions (use or purpose)	B. Contribution of Assets-with donor restrictions (time)
C. Contribution of Assets-without donor restrictions	D. Unconditional Pledge
E. Conditional Promise	F. Contribution of Services
G. Collection Item	H. Exchange Transaction

b) Then prepare the necessary journal entry to recognize revenue when applicable. If no entry is required, you are required to state so.

Answer rating: 100% (QA)

a The answer is option A which is Contribution of Assets with donor restrictions Donors can set two ... View the full answer