Accounting for contributions

Use the following information for the next seven questions:

Budoy Organization, a non-profit organization, received the following donations during the period:

January 1, 20x1: Land with fair value of 4,000,000 to be used at the discretion of Budoy Organization.

February 15, 20x1: Cash of 8,000,000, restricted for the acquisition of a truck. The truck will be used n Budoy Organization's outreach programs.

March 1, 20x1: Investment in equity securities with fair value of 2,000,000 to be held indefinitely. Only the investment income shall be used by Budoy Organization in its current operations.

May 1, 20x1: JPIA members from various universities contributed services in a tree-planting activity initiated by Budoy Organization Although the volunteers rendered their services for free, Budoy Organization estimates that the fair value of these services would amount to 20,000.

On June 30, 20x1, Budoy Organization acquired a truck for 8,000,000 and received dividends of 240,000 from the equity securities.

1.How much is the unrestricted contributions revenue?

a.4,240,000

b.4,000,000

c.6,020,000

d.4,020,000

2.How much is the temporarily restricted contributions revenue?

a.8,000,000

b.12,000,000

c.12,020,000

d.10,000,000

3.How much is the permanently restricted contributions revenue?

a.2,240,000

b.6,000,000

c.10,000,000

d.2,000,000

4.How much is the "net assets released from restrictions" in 20x1?

a.8,240,000

b.2,000,000

c.8,000,000

d.None

5.How much is the net effect of the transactions in the year-end unrestricted net assets? Ignore depreciation? Increase (Decrease)

a.20,240,000

b.12,240,000

c.(12,240,000)

d.20,000,000

6.How much is the net effect of the transactions in the year-end temporarily restricted net assets? Ignore depreciation? Increase (Decrease)

a.4,000,000

b.(4,000,000)

c.4,240,000

d.0

7.How much is the net effect of the transactions in the year-end permanently restricted net assets? Ignore depreciation? Increase (Decrease)

a.2,000,000

b.2,240,000

c.(6,000,000)

d.0