During the Years Ended June 30, 2020 and 2021, Jackson

question 49

Multiple Choice

During the years ended June 30, 2020 and 2021, Jackson University, a private university, conducted a cancer research project financed by a $1,000,000 gift from an alumnus. The entire amount was pledged by the donor on July 10, 2019. The gift was restricted to the financing of this particular research project. During the two-year research period, Jackson's gift receipts from the alumnus and research expenses related to the research project were as follows for each fiscal year (FY) :
What amount of net assets was released from restriction in 2020?

• A) $200,000.
• B) $100,000.
• C) $1,000,000.
• D) $0.

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Definitions:

Classify

The process of organizing or categorizing items, events, or transactions based on common characteristics or rules.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that guide how company transactions and other events need to be reported in financial statements.

Revaluation

The process of adjusting the book value of an asset to reflect its current market value.

Intangible Assets

Assets that cannot be physically touched or seen but hold value, such as copyrights, trademarks, and patents.