The Following Gifts Are Received in 2016 by a Not-For-Profit

question 34

Multiple Choice

The following gifts are received in 2016 by a not-for-profit entity:
I.$2,000 specified by the donor to be used to pay salaries.
II.$10,000 specified by the donor for new conference room furniture.
III.$5,000 specified by the donor to be held for one year before being expended.
The salaries are paid in 2017 and the conference room furniture is purchased in 2016. The donor did not specify any time restriction on holding the conference room furniture.
-What amount should be reclassified on the Statement of Activities for 2017 from the Temporarily Restricted column to the Unrestricted column?

• A) $ 2,000.
• B) $ 5,000.
• C) $ 7,000.
• D) $10,000.
• E) $12,000.

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Definitions:

Pent-3-ynoic Acid

Pent-3-ynoic acid is a carboxylic acid with the molecular formula C5H6O2, characterized by a triple bond between the third and fourth carbons and a carboxyl group at the end of the chain.

Compound

A substance formed from two or more elements chemically bonded together in a fixed ratio.

3-nitrophthalic Acid

An aromatic dicarboxylic acid compound with a nitro group substituted at the 3-position on the benzene ring.

Pentanedioic Acid

An organic compound also known as glutaric acid, with the formula C5H8O4, characterized by two carboxylic acid groups at each end of a five-carbon chain.