The following gifts are received in 2019 by a not-for-profit entity: $3,000 specified by the donor to be used to pay salaries. $12,000 specified by the donor for new conference room furniture. $6,000 specified by the donor to be held for one year before being expended. The salaries are paid in 2020 and the conference room furniture is purchased in 2019. 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 2020 from the With Donor Restrictions column to the Without Donor Restrictions column?   Multiple Choice   $3,000.   $6,000.   $9,000.   $12,000.   $15,000.

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
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Chapter3: Business Income And Expenses
Section: Chapter Questions
Problem 18MCQ
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The following gifts are received in 2019 by a not-for-profit entity:

  1. $3,000 specified by the donor to be used to pay salaries.
  2. $12,000 specified by the donor for new conference room furniture.
  3. $6,000 specified by the donor to be held for one year before being expended.

The salaries are paid in 2020 and the conference room furniture is purchased in 2019. 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 2020 from the With Donor Restrictions column to the Without Donor Restrictions column?

 

Multiple Choice
  •  

    $3,000.

  •  

    $6,000.

  •  

    $9,000.

  •  

    $12,000.

  •  

    $15,000.

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