Question
1. During the year, a not-for-profit organization receives cash contributions of $1,000,000 that are donor-restricted for constructing a new office building. As of year-end, $800,000
1. During the year, a not-for-profit organization receives cash contributions of $1,000,000 that are donor-restricted for constructing a new office building. As of year-end, $800,000 of these contributions have been used for building construction, and the organization holds the remaining balance in cash. The reporting of this information includes all of the following except:
Select one:
A. $200,000 included in the cash balance on the statement of financial position
B. $1,000,000 in contribution revenue, increasing net assets with donor restrictions on the statement of activities
C. $800,000 in construction in progress on the statement of financial position
D. $800,000 reduction in net assets with donor restrictions for net assets released from use restrictions on the statement of activities
2. At the beginning of 2020, a donor makes a documented promise to contribute $100,000 to a private NFP organization at the end of 2021. The donor says the contribution may be used for any purpose and follows through on his promise at the end of 2021. The appropriate interest rate is 4%. The promise is considered fully collectible. By how much does this donation increase the organization's net assets with donor restrictions in 2020?
Select one:
A. $ 92,456
B. $ 96,154
C. $-0-
D. $100,000
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