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

question 4

Multiple Choice

The following gifts are received in Year One by a not-for-profit organization:
I. $2,000 specified by the donor to be used to pay salaries.
II. $10,000 for new conference room furniture.
III. $5,000 to be held for one year before being expended.
The salaries are paid in Year Two and the conference room furniture is purchased in Year One.
-How much should be shown as increases as Temporarily Restricted Net Assets in Year One?

• A) $2,000
• B) $7,000
• C) $12,000
• D) $15,000
• E) $17,000

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