The Friends of the Library (FOL), a Not-For-Profit Entity, Received

question 14

Multiple Choice

The Friends of the Library (FOL) , a not-for-profit entity, received a gift restricted to the acquisition of a special piece of equipment used to restore books.Late last year FOL acquired the machine at a total cost of $19,000.The machine is estimated to have a useful life of eight years and a salvage value of $3,000.In what fund should FOL make the entry to record the depreciation for the current year?

• A)Unrestricted fund.
• B)Temporarily restricted fund.
• C)Permanently restricted fund.
• D)FOL should not recognize depreciation.

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Definitions:

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