Golden Path,a Labor Union,had the Following Receipts and Expenses for the Year

question 27

Multiple Choice

Golden Path,a labor union,had the following receipts and expenses for the year ended
December 31,2008:
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 31,2008,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.

---

Definitions:

Administrative Agencies

Governmental bodies responsible for the oversight and implementation of specific regulations and laws.

Federal Level

Pertains to the national government operations or regulations, as opposed to state or local levels.

State Level

Pertaining to governmental authority and matters that are handled by individual state governments, as opposed to the federal government.

Uniform Law

A law created to account for the variability of laws among states; serves to standardize the otherwise different interstate laws. Also called model law.