Question: I need typed solution with explanation. Don't use AI BOT. Give me a step by step proper explanation I will thumb up. Identifying the appropriate

I need typed solution with explanation. Don't use AI BOT. Give me a step by step proper explanation I will thumb up.

I need typed solution with explanation. Don't useI need typed solution with explanation. Don't use
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 the year ended December 31. Both net asset classifications may be affected in some transactions. If net assets are not affected by the transaction, select No entry as your answer. 1. Donor A gave a nonprofit a $50,000 cash gift in June, stipulating that the nonprofit could not use the gift until the next fiscal year. Net assets with donor restrictions Net assets without donor restrictions ised only for research on a specific project. Net assets with donor restrictions, reclassified to Net assets without donor restrictions No entry 3. In response to a special fundraising campaign, whereby contributions could be used only for construction of a new warehouse, a large number of individuals promised to make cash contributions totaling $2 million during the current fiscal year. The nonprofit believes it will actually collect 80 percent of the promised cash. 4. Donor C gave a nonprofit several investments having a fair value of $3 million in March. Donor C stipulated that the nonprofit must hold the gift in perpetuity, but it could use the income from the gift for any purpose the trustees considered appropriate. Between March and December, the investments produced income of $100,000. Gift from Donor C + Investment Income4. Donor C gave a nonprofit several investments having a fair value of $3 million in March. Donor C stipulated that the nonprofit must hold the gift in perpetuity, but it could use the income from the gift for any purpose the trustees considered appropriate. Between March and December, the investments produced income of $100,000. Gift from Donor C Investment Income 5. Using the resources raised in Transaction 3, a nonprofit paid an architect $50,000 before fiscal year end to make preliminary designs for a new building

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 Finance Questions!