). Gridiron University is a private university. A accessful alumnus has recently donated $1,000,000 Gridiron for the purpose of funding a "center for e study of sports ethics." This donation is condi- onal upon the university raising matching funds ithin the next 12 months. The university administra- rs estimate that they have 50% chance of raising the ditional money. How should this donation be ac- punted for?

). Gridiron University is a private university. A accessful alumnus has recently donated $1,000,000 Gridiron for the purpose of funding a "center for e study of sports ethics." This donation is condi- onal upon the university raising matching funds ithin the next 12 months. The university administra- rs estimate that they have 50% chance of raising the ditional money. How should this donation be ac- punted for?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

80. Gridiron University is a private university. A
successful alumnus has recently donated $1,000,000
to Gridiron for the purpose of funding a "center for
the study of sports ethics." This donation is condi-
tional upon the university raising matching funds
within the next 12 months. The university administra-
tors estimate that they have 50% chance of raising the
additional money. How should this donation be ac-
counted for?
a. As a temporarily restricted support.
b. As unrestricted support.
c. As a refundable advance.
d. As a memorandum entry reported in the footnotes.

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