ACCT. FOR GOV.&NONPROF. ENTITIES>CUSTOM
18th Edition
ISBN: 9781307515596
Author: RECK
Publisher: MCG/CREATE
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Chapter 14, Problem 14.3EP
To determine
Identify the manner in which the donations are included in the organization’s net assets.
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Students have asked these similar questions
Kanlungan, Inc., is a registered non-stock, non-profit entity with the purpose of helping the poor mainly by gathering donations from benevolent donors and distributing the same to the needy. On one occasion, Kanlungan, Inc., used a certain amount of donation to purchase a commercial stall. Kanlungan designated some of its staff to operate the commercial stall to generate income to boost the funds of the organization. Is the income from the stall taxable?
a. No, as long as it is used for the main purpose of the organization.
b. No, as long as the organization is tax exempt, its transactions remain tax exempt as well.
c. Yes, the income is from an unrelated source hence, taxable.
d. Answer not given.
1. Mike Lindell donated $200,000 to Habitat
for Humanity, a non profit. This donation was
restricted to be used for buying beds for
rehabbed houses for the poor. The journal
entry by Habitat for Humanity for the
donation should be:
2. Habitat for Humanity received a $200,000
grant to purchase a home for the Pederson
family. No variance power was given as to the
use of the proceeds. At the date of
contribution, write the journal entry by H for
H to record the initial receipt:
3.Eastern University, a private non profit
university, received the following amounts
during fiscal 2020
- tuition charged. 10,000,000
- less financial aid grants to students.
3,000,000'
Total receipts. = 7,000,000
How should the financial aid grants to
students be reported in the statement of
activities?
Sanaeil Center for Education, a nonprofit organization, learns that it has been named
as the remainder beneficiary of an irrevocable charitable remainder trust. When the
donor dies, the trust income will be distributed to the donor's spouse until their
death, at which point the nonprofit is expected to receive the beneficial interest,
with an estimated actuarial value of $500,000 as a permanent endowment. What
journal entry would the nonprofit organization record at the time the irrevocable
trust is created?
Chapter 14 Solutions
ACCT. FOR GOV.&NONPROF. ENTITIES>CUSTOM
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - Prob. 3QCh. 14 - What is the value of reporting expenses by...Ch. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - What criteria must be met before an NFP...Ch. 14 - Prob. 8QCh. 14 - What are joint costs, and how are joint costs...Ch. 14 - Prob. 10Q
Ch. 14 - Prob. 11CCh. 14 - Prob. 13CCh. 14 - Prob. 14.1EPCh. 14 - According to GAAP, all not-for-profit...Ch. 14 - Prob. 14.3EPCh. 14 - In a local NFP elementary schools statement of...Ch. 14 - Prob. 14.5EPCh. 14 - Prob. 14.6EPCh. 14 - The Maryville Cultural Center recently conducted a...Ch. 14 - Prob. 14.8EPCh. 14 - Prob. 14.9EPCh. 14 - Prob. 14.10EPCh. 14 - Prob. 14.11EPCh. 14 - Prob. 14.12EPCh. 14 - Prob. 14.13EPCh. 14 - Prob. 15EPCh. 14 - Donated Services. (LO14-3) Indicate whether each...Ch. 14 - Prob. 17EPCh. 14 - Prob. 18EPCh. 14 - Prob. 19EPCh. 14 - Statement of Activities. (LO14-3) The Atkins...Ch. 14 - Prob. 21EPCh. 14 - Prob. 22EPCh. 14 - Prob. 23EPCh. 14 - Prob. 24EPCh. 14 - Prob. 25EP
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