The Following Information Applies to the Next Three Questions

question 65

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, 2014, the last day of the fiscal year. The pledge was to pay $15,000 per year each year for five years, beginning on December 31, 2015. The discount rate is 6%. The present value of five payments of $15,000 is $63,185. The present value of four payments of $15,000 is $51,977. No purpose or plant restrictions were involved.
-The private college would:

• A) Record contribution revenue of $3,792 in 2014.
• B) Record contribution revenue of $3,792 in 2015.
• C) Record interest revenue of $3,792 in 2014.
• D) Record interest revenue of $3,792 in 2015.

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Definitions:

English Attempt

Refers to efforts or endeavors by English entities or individuals, usually within a historical context, such as colonization or exploration.

Prevailing Winds

Winds from a single directional pattern that dominate a region's climate.

European Trade

The exchange of goods, services, and capital among countries in Europe, historically significant for its role in global trade patterns, exploration, and the establishment of colonial empires.

European Voyages

Exploratory and trade expeditions by European countries from the late 15th century onward, leading to the discovery of new lands and sea routes.