Kelsey Nicholas Contributes $80,000 to Wagner University Requesting That She

question 62

Multiple Choice

Kelsey Nicholas contributes $80,000 to Wagner University requesting that she receive $5,000 annually for the rest of her life, after which, the university may spend the funds as it sees fit.The journal entry to record this gift would include:​

• A)​a debit to Annuity Expense for the present value of the expected payments over Kelsey's lifetime.
• B)​a credit to Annuities Payable for $80,000.
• C)​a credit to Revenues - Temporarily Restricted Contribution for $80,000.
• D)​A credit to Annuities Payable for the present value of the expected payments over Kelsey's lifetime.

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Definitions:

Countercurrent Multiplier

A system, particularly in the kidney, that enables the production of a concentrated urine by exploiting the flow of fluids in opposite directions.

Medullary Interstitial Fluid

The fluid found in the interstitial spaces of the medulla in the kidneys, crucial for the concentration of urine.

Parallel Tubes

Structures resembling cylinders or tubes, aligned side by side, often found in biological and mechanical systems.

Posterior Pituitary

A part of the pituitary gland that releases hormones produced in the hypothalamus, including oxytocin and antidiuretic hormone.