A donor agrees to contribute $5,000 per year at the end of each of the next five years to a voluntary health and welfare organization. The donor did not place any use restrictions on the amount pledged. The stream of the payments is discounted at 6 percent. The first payment of $5,000 is received at the end of the first year. The present value factor for a five-payment annuity due on June 30, 20X9, at 6 percent is 4.2124. The present value factor for a four-payment annuity due on June 30, 20X9, at 6 percent is 3.4651.

66) Based on the preceding information, the journal entry to recognize present value at the time the pledge is received includes:

A) a credit to Pledges ReceivableTemporarily Restricted for $25,000.

B) a debit to ContributionsTemporarily Restricted for $21,062.

C) a debit to Pledges ReceivableTemporarily Restricted for $21,062.

D) a credit to ContributionsTemporarily Restricted for $25,000.

Answer: C

67) Based on the preceding information, at the end of the first year, the pledge increased net assets without donor restrictions by:

A) $25,000.

B) $21,062.

C) $4,212.

D) $5,000.

Answer: D

68) Based on the preceding information, the increase in present value of the contributions receivable recognized at the end of the first year equals:

A) $5,000.

B) $1,264.

C) $4,212.

D) $787.

Answer: B

Please explain using clear math steps how to get the bold answers