Use the Following Information to Answer Questions

question 2

Multiple Choice

Use the following information to answer Questions
Kale Hospital, a not-for-profit entity, received a pledge from a donor in support of a fund raising effort by the Hospital to finance construction of a new facility for cancer treatment.The donor promised to pay $2 million in equal annual installments of $200,000 over the next 10 years.The present value of the gift at the risk-free interest rate is $1,472,000.
-The amount of unrestricted revenue that should be recognized by Kale in the year of the gift is

• A)$2 million.
• B)$1,472,000.
• C)$200,000.
• D)$0.

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Definitions:

Jane's Capital

Jane's Capital refers to the amount of money or value of assets that Jane has invested in a business or enterprise.

Legal Practice

The profession and activities related to providing legal advice, representation, and services to clients.

Journal Entry

A record in accounting that notes a specific financial transaction in a company's general ledger.

Revenue

Revenue is the total amount of money earned by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.