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1 3 . Geneva Preschool provides free instruction for children from low - income families. Its January 1 , 2 0 2 3 , trial

13. Geneva Preschool provides free instruction for children from low-income families. Its January 1,2023, trial balance is as follows:
Debit Credit
Cash $100,000
Equipment & furnishings, net 1,500,000
Building, net 3,500,000
Accounts payable $200,000
Net assets without donor restrictions 3,400,000
Net assets with donor restrictions 1,500,000
$5,100,000 $5,100,000
Activities for 2023:
a. Unrestricted cash contributions were $4,500,000.
b. On January 1,2023, a donor made a documented promise of $500,000, to be paid at the end of 2025(3 years later). The donor restricts this contribution to support of music-related programs. Using a 5 per cent discount rate, the present value of this promise is $431,918.
c. Each year, Geneva collects donor-restricted contributions to purchase technology for educational programs. During 2023, $200,000 was received and $500,000 was spent. Geneva expenses technology purchases.
d. Out-of-pocket operating expenses for the year were $4,200,000. The year-end accounts payable balance, all related to operating expenses, was $150,000.
e. A licensed CPA did all of Genevas required financial statements and IRS forms for free. Fair value of these services is $25,000. Parents of students donated their time to lead preschool classes in safety and nutrition. The fair value of their time is $5,000.
f. Depreciation for the year on equipment and furnishings was $250,000. Depreciation on the building was $600,000.
Geneva uses the indirect method to display the operating section of its statement of cash flows. On Genevas 2023 statement of cash flows, the reconciliation to cash from operations requires adding which item?
Select one:
b. $850,000 depreciation expense
c. $25,000 contribution of services
d. $431,918 promises to contribute 14. Geneva uses the indirect method to display the operating section of its statement of cash flows. On Genevas 2023 statement of cash flows, what amount appears as the change in net assets, before adjustment to cash from operating activities?
$50,000 change in accounts payable
$25,000 contribution of services
$850,000 depreciation expense

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