A Farmer Donated a Large Tract of Land and a Building

question 64

Essay

A farmer donated a large tract of land and a building to a community group for use as a recreation center. The agreement provided that the recreation center employ 50 people for 10 years. The land was appraised for $150,000 and the building at $75,000.
Required:
1) Prepare the journal entry to record the acquisition of the land and building.
2) How should the 10 year agreement be reported in the financial statements?

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Definitions:

National Holiday

A day set aside by a nation for celebrating a specific event, achievement, or person significant to the country's heritage or history, where usual business operations are typically suspended.

Unemployment Rates

A measure of the number of people actively looking for a job as a percentage of the labor force.

Affirmative Action

Policies designed to increase opportunities for underrepresented groups by factoring in traits like race, gender, or disability in areas such as education and employment.

Cultural Nationalism

A form of nationalism focused on the promotion and preservation of a shared culture, language, and heritage within a specific nation.