Golden Path, a Labor Union, Had the Following Receipts and Expenses

question 93

Multiple Choice

Golden Path, a labor union, had the following receipts and expenses for the year ended December 31, 20X8: The union's constitution provides that 12 percent of the per capita dues be designated for the strike insurance fund to be distributed for strike relief at the discretion of the union's executive board.
Based on the information provided, in Golden Path's statement of activities for the year ended December 31, 20X8, what amount should be reported under the classification of program services?

• A) $720,000
• B) $910,000
• C) $440,000
• D) $760,000

---

Definitions:

Inherited

Pertains to assets, traits, or conditions passed down from parents to their offspring through genes or legal processes.

Judgment Creditors

Individuals or entities awarded a monetary judgment against a debtor in court.

Life Estate

A legal arrangement whereby a person (life tenant) has the right to use, occupy, and benefit from a property during their lifetime, but cannot sell it, and upon their death, it passes to a remainderman.

Strip-Mine

Strip-mining is an extractive mining technique used for surface mineral extraction, where layers of soil and rock are removed to access buried mineral or coal deposits.