1. in July, 2015, Katie irrevocably donated $200,00 cash to be invested and held in trust by a church. Katie stipulated that the revenue generated from this gift be paid to Katie during Katie's lifetime. After Katie dies, the principal is to be used by the church for any purpose chosen by its governing body. The church received interest of $16,000 on the $200,000 for the year ended June 30, 2016, and the interest was given to Katie. In the church's June 30, 2016 annual financial statements,

a. 200,000 should be reported as revenue

b. 184,000 should be reported as revenue

c. 216,000 should be reported as revenue

d. 16,000 should be reported as revenue

2. RST Charities received equity securities valued as $100,000 as an unrestricted gift. During the year, RST received $5,000 in dividends from these securities; at year end, the securities had a fair market value of $110,000. By what amount did these transactions increase RST's net assets?

a. 5,000

b. 100,000

c. 105,000

d. 115,000

3. Contributed services are recognized as revenue for a private not-for-profit when the service:

a. Is related to administration and fund raising activities.

b. Requires specialized skills, is provided by someone possessing those skills, and typically would be purchased if not provided by donation.

c. A and B are both required for the service to be recorded as revenue.

d. None of the above, contributed services are not recorded as revenue.