A Local Philanthropist Made an Unconditional Pledge to Donate $100,000

question 61

Multiple Choice

A local philanthropist made an unconditional pledge to donate $100,000 to a not-for-profit organization to be paid in five equal installments of $20,000 beginning in two years. Under FASB standards the pledge would be recognized as:

• A) A contribution of $20,000 in each of the five years a contribution is made.
• B) A contribution of $100,000 in the year the pledge is made, adjusted for the estimated uncollectible amount.
• C) Deferred support of $100,000 in the year the pledge was made.
• D) A contribution of $100,000 in the year the pledge was made, discounted for the difference between the pledge and its present value.

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Definitions:

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