48. A private not-for-profit performing arts center receives the following three donations: A gift of $90,000 which is unrestricted. A gift of $125,000 restricted for payment of sala- ries. A gift of $200,000 that is restricted forever but the income from the gift may be used for current expenditures. Which of the following is not true? a. Temporarily restricted net assets increased by $125,000. b. Permanently restricted net assets increased by $325,000. c. When the money is spent for salaries, unrestricted net assets increase and decrease by the same amount. d. When the money is spent for salaries, temporarily restricted net assets decrease.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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pls solve this question with a complete explanation and also why other options are incorrect within 10-15 minutes I'll give you multiple upvotes.
48. A private not-for-profit performing arts center
receives the following three donations:
A gift of $90,000 which is unrestricted.
A gift of $125,000 restricted for payment of sala-
ries.
A gift of $200,000 that is restricted forever but
the income from the gift may be used for current
expenditures.
Which of the following is not true?
a. Temporarily restricted net assets increased by
$125,000.
b. Permanently restricted net assets increased by
$325,000.
c. When the money is spent for salaries, unrestricted
net assets increase and decrease by the same
amount.
d. When the money is spent for salaries, temporarily
restricted net assets decrease.
Transcribed Image Text:48. A private not-for-profit performing arts center receives the following three donations: A gift of $90,000 which is unrestricted. A gift of $125,000 restricted for payment of sala- ries. A gift of $200,000 that is restricted forever but the income from the gift may be used for current expenditures. Which of the following is not true? a. Temporarily restricted net assets increased by $125,000. b. Permanently restricted net assets increased by $325,000. c. When the money is spent for salaries, unrestricted net assets increase and decrease by the same amount. d. When the money is spent for salaries, temporarily restricted net assets decrease.
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