During the Year, a Not-For-Profit Entity Received $30,000 in Dividends

question 40

Multiple Choice

During the year, a not-for-profit entity received $30,000 in dividends and $24,000 in interest on its investment portfolio.The entity also accrued $6,000 in interest on the portfolio.The increase in fair value of the portfolio during the year was $8,000.How much should the entity report for investment earnings during the year?

• A)$62,000.
• B)$54,000.
• C)$8,000.
• D)$0.

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Definitions:

Zebrafish

A tiny fish that thrives in freshwater, frequently utilized in scientific studies because of its clear embryos and fast growth rate.

IFRS 9 Financial Instruments

It refers to an International Financial Reporting Standard that deals with the recognition, measurement, impairment, and derecognition of financial assets and liabilities.

Realized Gains

Profits that result from selling an asset at a higher price than its cost.

Other Comprehensive Income

Earnings that are not part of net income, consisting of items such as unrealized gains and losses on certain investments.