The Save the Animals Foundation Received a Gift of $500,000

question 20

Multiple Choice

The Save the Animals Foundation received a gift of $500,000 from a donor who wanted the gift used to acquire habitat for endangered snails.The money may be invested but all earnings are restricted to habitat acquisition.During the year the entire gift was invested in corporate securities.At year-end, the securities had a value of $501,000.The appropriate way to recognize the change in fair value is

• A)Debit Investments $1,000; Credit Unrestricted revenue $1,000.
• B)Debit Investments $1,000; Credit Temporarily restricted revenue $1,000.
• C)Debit Investments $1,000; Credit Permanently restricted revenue $1,000.
• D)No entry should be made until the securities are sold.

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power.

Marketing Tactic

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Federal Trade Commission

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