24.

Services were donated to a nonprofit entity that did not create or enhance a nonfinancial asset. For the nonprofit entity to recognize contribution revenue from the donated services, the services must require specialized skills. be performed by persons possessing those specialized skills. need to be purchased if not donated. A and B. A. B, and C.

25. A private foundation made a multi-year pledge to a nonprofit entity on December 31, 2020. The foundation pledged to contribute $10,000 per year for each year for five years, beginning on December 31, 2021. Using a discount rate of 6%, the present value of the five payments is $42,124 as of December 31, 2020. No purpose restrictions were placed on the amount pledged. For the nonprofit entity, which of the following statements is correct for the statement of activities for the year ended December 31, 2020?

1. Net assets with donor restrictions increased $50,000.
2. There was no effect on net assets without donor restrictions.
3. A and B.
4. Neither A nor B.

26. Refer to the previous question. On the statement of activities for the year ended December 31, 2021, which of the following statements is correct?

1. Contribution revenue of $2,527 (rounded) is reported under the column that reports net assets with donor restrictions.
2. A reclassification of $10,000 is reported from net assets with donor restrictions to net assets without donor restrictions.
3. A and B.

Neither A nor B.