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A Donor Agrees to Contribute $5,000 Per Year at the End

question 99

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A donor agrees to contribute $5,000 per year at the end of each of the next five years to a voluntary health and welfare organization. The donor did not place any use restrictions on the amount pledged. The stream of the payments is discounted at 6 percent. The first payment of $5,000 is received at the end of the first year. The present value factor for a five-payment annuity due on June 30, 20X9, at 6 percent is 4.2124.
Based on the preceding information, the increase in present value of the contributions receivable recognized at the end of the first year equals:

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Definitions:

Negative Emotion

Feelings or emotions that are unpleasant or undesirable, such as anger, sadness, fear, or jealousy.

Hallucination

The perception of something not present, often involving seeing or hearing things that aren't there.

Subjective State

A psychological condition based on an individual's inner experiences and feelings.

Physiological Changes

Alterations or modifications in the functions or structures of living organisms, often as a response to environmental factors or developmental processes.

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