For Each of the Cases Below, State Whether the Contributed

question 14

Essay

For each of the cases below, state whether the contributed services would be recognized and, if so, how much would be recognized and how it would be recognized. Explain your answer in terms of the existing standards. Also explain why, in your opinion, the standards permit or prohibit recognition of this particular type of contribution.
a. A church votes to construct a new educational wing on its existing facility. The church will hire an architect to design the new wing and a construction supervisor to oversee the construction. Church members will provide most of the labor for the construction. Labor donated by members who have construction experience or who are considered professional craftsmen at the prevailing wage for their trade or craft is $500,000. Labor donated by persons possessing non-building specialized skills (doctors, teachers, lawyers, etc.) at their prevailing wage rates is $700,000. Labor donated by non-professionals measured at the minimum wage is $300,000. The appraised value of the building when completed is $3 million. The architect was paid $700,000, the construction supervisor was paid $50,000 and the materials purchased for use in the building cost $1 million.
b. An investment advisor, a member of the board of No Fleas Please, a not-for-profit animal care organization, provides pro bono investment advice to NFP. NFP does not have a particularly large investment portfolio and, without the advice of the board member, NFP probably would invest its idle cash in certificates of deposit at an insured commercial bank to protect itself against loss of principal. If the investment advisor had provided similar services to his customers he would have charged $2,000.
c. Members of a religious order provide professional nursing services for a healthcare facility that is run by their order. The members are not compensated but their order provides lodging, food, and other necessities, the cost of which is paid by the healthcare entity and classified as nursing services expense. At the end of the year the balance in the nursing services expense account is $3 million. The value of the nursing services provided, measured at the prevailing wage for nurses, is $5 million.

Understand the decision-making process regarding leasing versus buying assets, including the calculation of incremental cash flows.

Understand Sternberg's triangular theory of love and its components.

Recognize the influences and misconceptions about physical attractiveness.

Identify factors affecting relationship dynamics including strategies for dealing with anger and the impact of similarity and difference in attractiveness on attraction.

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Definitions:

Meperidine (Demerol)

A synthetic opioid analgesic drug used to treat moderate-to-severe pain, known for its potential for addiction and side effects.

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A painful episode that occurs in people with sickle cell disease when sickle-shaped red blood cells obstruct blood flow to tissues, leading to pain and potential organ damage.

Liquid Iron Preparations

Oral formulations used to treat or prevent iron deficiency and anemia, providing iron in a liquid form for easier absorption.

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the rest of the body and returns carbon dioxide from the body to the lungs to be exhaled.