At the beginning of 2020, a private NFP organization receives a donation of equipment with a fair value of $1,000,000 and an estimated useful life of 5 years, no residual value The donor requires the equipment to be used for a specific project What items appear in the 2020 statement of activities related to this donation A Contributions revenue (increases net assets with donor restrictions) $1,000,000 net assets released from use restrictions (increases net assets without donor restrictions and reduces net assets with donor restrictions) $200,000 expense (reduces net assets without donor restrictions) $200,000 B Contributions revenue (increases net assets without donor restrictions) $1,000,000 expense (reduces net assets with donor restrictions) $200,000 C Contributions revenue (increases net assets without donor restrictions) $1,000,000 expense (reduces net assets without donor restrictions) $200,000 D Contributions revenue (increases net assets with donor restrictions) $1,000,000 expense (reduces net assets without donor restrictions) $200,000

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Posted on Aug 28, 2024

At the beginning of 2020, a private NFP organization receives a donation of equipment with a fair value of $1,000,000 and an estimated useful life

At the beginning of 2020, a private NFP organization receives a donation of equipment with a fair value of $1,000,000 and an estimated useful life of 5 years, no residual value. The donor requires the equipment to be used for a specific project. What items appear in the 2020 statement of activities related to this donation?

	A.	Contributions revenue (increases net assets with donor restrictions) $1,000,000; net assets released from use restrictions (increases net assets without donor restrictions and reduces net assets with donor restrictions) $200,000; expense (reduces net assets without donor restrictions) $200,000.
	B.	Contributions revenue (increases net assets without donor restrictions) $1,000,000; expense (reduces net assets with donor restrictions) $200,000.
	C.	Contributions revenue (increases net assets without donor restrictions) $1,000,000; expense (reduces net assets without donor restrictions) $200,000.
	D.	Contributions revenue (increases net assets with donor restrictions) $1,000,000; expense (reduces net assets without donor restrictions) $200,000.