Do-Good Inc

question 57

Multiple Choice

Do-Good Inc. is a newly formed not-for-profit organization. On January 1, 2012, its first day of operations, Do-Good purchased equipment costing $8,000. The equipment is estimated to have a useful life of 4 years, with no residual value at that time. This transaction was the only transaction that took place to date. The equipment was purchased from a restricted fund contribution of $8,400. What would be the carrying value of the equipment on December 31, 2012?

• A) $6,000.
• B) $6,300.
• C) $8,000.
• D) $8,400.

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Definitions:

Industry Averages

Statistical metrics that represent the standard or average performance, productivity, or financial health of companies within a certain industry.

Expenses

Costs incurred in the process of generating revenue, including operational costs like rent, utilities, salaries, and materials.

Sales

The process of selling goods or services in exchange for money or other compensation.

Supplier Relationship

The interaction and management of connections between a company and the businesses that supply the materials or services it uses in its operations.