During the Year Ended June 30,2017,Hopkins College,a Private College,received a Federal

question 3

Multiple Choice

During the year ended June 30,2017,Hopkins College,a private college,received a federal government grant of $800,000 for research on the role of music in improving math skills for students.Expenses for this research amounted to $100,000 during the same year.Under FASB standards,which of the following best represents how Hopkins College would report this nonexchange transaction in the net assets section for the year ended June 30,2017?

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D

---

Definitions:

Demand Increase

A situation where consumers are willing and able to purchase more of a product or service at each price level, often caused by changes in tastes, income, or prices of related goods.

Consumer Surplus

The separation in monetary terms between what consumers are willing to pay for a good or service and their final payment amount.

Cost of Producing Chairs

The total expenses incurred in the manufacturing of chairs, including materials, labor, and overhead costs.

Consumer Surplus

The variance between the sum consumers are willing to pay for a good or service and the amount they truly pay.