were restricted for research activities. During the year ended June 30, 20X9, $90,000 of the contributions were expended on research. (3) It sold investments classified in the permanently restricted class for a loss of $40,000. Dividends and interest income earned on the investments amounted to $70,
Local Services, a voluntary health and welfare organization had the following classes of net assets on July 1, 20X8, the beginning of its fiscal year:
During the year ended June 30, 20X9, the following events occurred:
(1) It purchased equipment, costing $100,000, with contributions restricted for this purpose. The contributions had been received from donors during June of 20X8.
(2) It received $130,000 of cash donations which were restricted for research activities. During the year ended June 30, 20X9, $90,000 of the contributions were expended on research.
(3) It sold investments classified in the permanently restricted class for a loss of $40,000. Dividends and interest income earned on the investments amounted to $70,000. There were no restrictions on how investment income was to be used.
(4) It received cash contributions of $200,000 from donors who did not place either time or use restrictions upon their donations.
(5) Expenses, excluding
(6) Depreciation expense for the year ended June 30, 20X9, was $80,000.
Refer to the above information. On the statement of activities for the year ended June 30, 20X9, temporarily restricted net assets:
A. increased $130,000.
B. increased $40,000.
C. decreased $100,000.
D. decreased $60,000.
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