Computer Equipment Used in the Business Office of a Not-For-Profit

question 1

Multiple Choice

Computer equipment used in the business office of a not-for-profit organization was sold for $9,000. The original cost of the equipment had been $21,000 and there was $15,000 of accumulated depreciation as of the date of sale. How will the gain be reported?

• A) Gains are not recognized in not-for-profit organizations.
• B) Gain of $3,000 in changes in net assets without donor restrictions.
• C) Gain of $3,000 in changes in net assets with donor restrictions.
• D) Net assets released from restrictions of $3,000.

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Definitions:

Mass-Consumption Society

A society characterized by the widespread purchasing and use of consumer goods by a large proportion of the population.

Economic Decline

A period characterized by reducing economic activity, falling GDP, and increasing unemployment.

Federal Government

The national government of a federal country, which holds the authority of governing the whole country, distinguishing it from the governments of the individual states or provinces.

19th Century

Refers to the period from January 1, 1801, to December 31, 1900, marking the nineteenth century in the Gregorian calendar.