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:

Triplet

A term in quantum mechanics referring to a system (often an electron) that exists in three possible states with the same energy, typically in the context of spin states.

NMR

Nuclear Magnetic Resonance, a technique that exploits the magnetic properties of certain atomic nuclei to determine physical and chemical properties of atoms or the molecules in which they are contained.

Quartet

In nuclear magnetic resonance (NMR) spectroscopy, a signal pattern of four peaks that suggests the presence of three equivalent protons adjacent to the observed nucleus.

Singlet

A term used in spectroscopy to describe an energy state of an atom or molecule where all electron spins are paired, resulting in zero net magnetic spin.