"A private not-for-profit organization is working to create a cure for a deadly disease. The organization starts the year with cash of $700,000. This amount unrestricted net assets total $400,000, temporarily restricted net assets total $200,000, and permanently restricted net assets total $100,000. Within the temporarily net assets, the organization must use 80 percent for equipment and the rest for salaries. No implied time restriction has been designated for the equipment when purchased. For the permanently restricted net assets 70 percent of resulting income must be used to cover the purchase of advertising for fund0rasing purposes and the rest is unrestricted.

During the current year, the organization has the following transactions:

Received unrestricted cash gifts of $210,000

Paid salaries of $80,000 with $20,000 of the amount coming from restricted funds. Of the total salaries, 40 percent is for administrative personnel and the remainder is evenly divided up among individuals working on research to cure the designated disease and individuals employed for fund raising purposes.

Bought equipment for $300,000 with a long0term note signed for $250,000 and restricted funds used for the remainder. Of this equipment, 80 percent is used in research, 10 percent is used in administration, and the remainder is used for fund-raising.

Collected membership dues for $30,000. The members receive a reasonable amount of value in exchange fore these dues including a monthly newsletter describing research activities.

Received $10,000 from a donor that must be conveyed to another organization doing work on a related disease.

Received investment income of $13,000 generated by the permanently restricted net assets. The donor has stipulated that 70 percent of the income is to be used for advertising, and the reminder may be used at the organizations discretion.

Paid advertising of $2,000.

Received an unrestricted pledge of $100,000 that will be collected in three years. The organization expects to collect the entire amount. The pledge has a present value of $78,000 and related interest (additional contribution revenue) of $3,000 in the year.

Computed depreciation on the equipment acquired as $20,000.

Spent $93,000 on research supplies that it utilized during the year.

Owed salaries of $5,000 at the end of the year. Half of this amount is for individuals doing fund-raising and half for individuals doing research.

Received a donated painting that qualifies as a museum piece. It has a value of $800,000. Officials do not want to record this gift if possible.

a. Prepare a statement of activities for this organization for this year

b.prepare a statement of financial position for this organization for thisyear