Golden Path, a Labor Union, Had the Following Receipts and Expenses

question 18

Multiple Choice

Golden Path, a labor union, had the following receipts and expenses for the year ended
December 31, 20X8:
The union's constitution provides that 12 percent of the per capita dues be designated for the strike insurance fund to be distributed for strike relief at the discretion of the union's executive board.

-Based on the information provided,in Golden Path's statement of activities for the year ended December 31,20X8,what amounts should be reported under the classifications of temporarily and permanently restricted net assets?

• A) $0 and $110,000 respectively.
• B) $110,000 and $0 respectively.
• C) $60,000 and $50,000 respectively.
• D) $50,000 and $60,000 respectively.

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Definitions:

Call Contract

A financial contract that gives the buyer the right, but not the obligation, to buy a specified amount of an asset at a predetermined price within a specified time period.

Write

In finance, to sell an option contract, effectively creating a new option in the market.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specified period.

Premium

The amount paid for an option or insurance policy over its intrinsic value or the amount by which the price of a bond exceeds its face value.