The Following Information Applies to the Next Three Questions

question 51

Multiple Choice

The following information applies to the next three questions:
A private foundation made a multi-year pledge to a private college on December 31, 2013, the last day of the fiscal year. The pledge was to pay $12,000 per year each year for five years, beginning on December 31, 2014. The discount rate is 6%. The present value of five payments of $12,000 is $50,548. The present value of four payments of $12,000 is $41,581. No purpose or plant restrictions were involved.
-The private college would:

• A) Record contribution revenue in the amount of $12,000 in each of the years 2014, 2015, 2014, 2015 and 2016.
• B) Record contribution revenue in the amount of $50,548 in 2013.
• C) Record contribution revenue in the amount of $50,548 in 2014.
• D) None of the above

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Definitions:

Emotional Intelligence

The skill of recognizing, comprehending, and controlling one's own feelings and those of other people.

Business World

The business world encompasses the broad spectrum of activities related to commerce, trade, production, and management of money and resources in organizations.

Appraisal Theory

A theory in psychology that suggests emotions are extracted from our evaluations (appraisals or estimates) of events that cause specific reactions in different people.

Emotion

A complex psychological state involving an individual's physiological response, expressive behaviors, and conscious experience.