E$13-33.($Identifying the appropriate net asset classification$)$

For each of the following transactions, identify the net asset classification $($without donor restrictions, with donor restrictions$)$ that is affected in the nonprofit's financial statements for its fiscal year ending in December. Both net asset classifications may be affected in some transactions.

Chapter $13$ Accounting for Nonprofit Organizations

$13-44$

used until the next fiscal year. $($Identify the aff, $000$ in June, telling the nonprofit the gift could not be made both in the current fiscal year and the nexted net asset classification$($s$)$ in the journal entries

$2.$ Attorney Howard Gorman volunteered his sext fiscal year.$)$ hours preparing contracts for the services of pervices to Taconic Singers, a nonprofit. He spent $12$ before performances. Gorman normally gets professional singers and $8$ hours serving as an usher pays $$8$ an hour when it hires ushers.

$3.$ Donor B sent a letter to a nonprofit, saying she would donate $$20,000$ in cash to the nonprofit, to be used for any purpose the nonprofit's trustees desired, provided the nonprofit raised an equal amount of cash from other donors.

$4.$ Regarding the previous transaction, the nonprofit raised $$23,000$ in cash from other donors and then notified Donor $B$ of its success in meeting her condition for the gift.

$5.$ Donor $C$ donates to a local museum a work of art having a fair value of $$5,000,$ with the understanding that the museum will sell it at auction and use the funds for its general activities.

$6.$ Donor $D$ advises a university that he has established an irrevocable charitable remainder trust, administered by his attorney, whereby his wife will receive income from the trust as long as she lives. At her death, the remaining trust assets will be distributed to the university as a permanent endowment. The university's actuary estimates the fair value of the university's beneficial interest to be $$400,000.$

$7.$ As of December $31,$ the fair value of investments held in perpetuity by a nonprofit had increased by $$30,000.$