1. Net assets is an element of the financial statements of nongovernmental NFP entities. It

a. is the residual interest in th assets of an NFP after subtracting its liabilites.

b. is the change in equity during a period from transactions and other events and circumstances not involving resource providers.

c. differs from equity in businesses because it is not a residual interest.

d. consists of the probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.

2. During the current year, Mill Foundation, a nongovernmental NFP entity, received $100,000 in unrestricted contributions from the general public. Mill's board of directors stipulated that $75,000 of these contributions would be used to create an endowment. At the end of the current year, how should Mill report the $75,000 in net assets?

a. permanently restricted

b. unrestricted

c. temporaly restricted

d. donor restricted

3. On January 1, a nongovernmental NFP botanical society received a gift of an exhaustible fixed asset with an estimated useful life of 10 years and no salvage value. The donor's cost of this asset was $20,000, and its fair value at the date of the gift was $30,000. What amount of depreciation should the society recognize each year in its financial statements?

a. 0

b. 2000

c. 3000

d. 2500