A wealthy individual donated $$80,000$ with the condition that the principal be invested in low$-$risk investments. The principal was invested in long$-$term bonds, which are expected to be held to maturity. The interest on the bonds is to be used to provide scholarships to aspiring Native artists who wish to study art at a Canadian university or college. The first scholarship of $$5,000$ was awarded in September Year $5.$

The artwork consists of $20$ paintings from a number of Canadian artists. These paintings are expected to be held for at least $10$ years. The paintings will likely appreciate in value over the time they are owned by the art gallery.

The society signed a five$-$year lease on the building with an option to renew for one further term of $5$ years. The term of the lease commenced on January $1,$ Year $5.$ The total rent paid for the year included a deposit of $$2,000$ for the last month$$s rent. The leasehold improvements were completed on March $31,$ Year $5.$ The office space was occupied by the staff of the society, and the art gallery was opened for business on April $1,$ Year $5.$

Salaries earned but not yet paid amounted to $$5,000$ at December $31,$ Year $5.$

The society received office equipment from a local business person on January $1,$ Year $5.$ A donation receipt for $$20,000$ was given for this contribution. The office equipment has a useful life of five years with no residual value.

The provincial government provided an operating grant of $$100,000$ for Year $5,$ of which $$90,000$ was received by the end of the year. The remaining $$10,000$ will be received once the society provides financial statements prepared in accordance with GAAP.

The society will follow Part III of the CPA Canada Handbook and wishes to use the deferral method of accounting for contributions.

Required:

$($a$)$ This part of the question is not part of your Connect assignment.

$($b$)$ Prepare a statement of financial position for the society at December $31,$ Year $5.($You can use an assumed number for excess of revenue over expenses to balance your statement of financial position.$)($Amounts to be deducted should be indicated with a minus