Question
At the beginning of 2019, the Cultural Museum, a private NFP organization, receives a documented promise to contribute $10,000 at the end of each year
At the beginning of 2019, the Cultural Museum, a private NFP organization, receives a documented promise to contribute $10,000 at the end of each year for the next three years. The appropriate discount rate is 5%, and present value of the gross contribution is $27,233. The promise is considered fully collectible. At the end of 2019, the museum receives the first payment.
19. When the promise is recorded at the beginning of 2019, what are contributions receivable and contribution revenue to be recorded, respectively?
Contribution Receivable Contribution Revenue
a. $30,000 $30,000
b. $30,000 $28,594
c. $27,233 $28,594
d. $30,000 $27,233
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