How much should Town report as unrestricted contribution revenue for 20X6 with respect to the pledges?

a. $0

b. $360,000

c. $720,000

d. $800,000 

Town Service Center is a voluntary health and welfare organization funded by contributions from the general public. During 20X6, it received unrestricted pledges of $800,000, half of which were payable in 20X6 with the other half payable in 20X7 for use in 20X7. It was estimated that 10 percent of these pledges would be uncollectible. In addition, Ladd, a social worker on Town’s permanent staff earning $30,000 annually for a normal workload of 1,500 hours, contributed an additional 600 hours of time to Town at no charge.