Land Valued at $100,000 Was Donated to a Not-For-Profit Organization

question 20

Short Answer

Land valued at $100,000 was donated to a not-for-profit organization. The donation came with no restrictions. The organization's management decided to hold the land for resale and use the proceeds to establish a reserve for future capital needs. Which of the following journal entries would be made on the date of donation? $\begin{array}{llr}&&\text { Debit }&\text {Credit }\\ \text { A. } & \text { Land Held for Resale} &\$100,000\\ &\text { Contribution Revenues with Donor Restrictions } &&\$100,000\\\\ \text { B. } & \text { Land Held for Resale} &\$100,000\\ &\text { Capital Contributions} &&\$100,000\\\\ \text { C. } & \text { Land Held for Resale } &\$100,000\\ &\text { Contribution Revenues with Donor Restrictions } &&\$100,000\\\\ \text { D. } & \text {Land Held for Resale } &\$100,000\\ &\text { Contribution Revenues with Donor Restrictions } &&\$100,000\\\end{array}$

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Definitions:

Corporate Leaders

Individuals who hold senior management positions within a corporation, responsible for strategic decisions and organizational direction.

Offshoring

The practice of relocating business processes or production to another country, typically to leverage lower labor costs or specialized skills.

Manufacturing Jobs

Positions or occupations involved in the production of goods in factories, involving both manual labor and operation of machinery.

Management Knowledge

The body of information and skills related to organizing, planning, directing, and controlling resources for achieving organizational objectives.