1. At the beginning of the year, the Baker Fund, a non-governmental not-for-profit corporation, received a $125,000 contribution restricted to youth activity programs. During the year, youth activities generated revenues of

$89,000 and had program expenses of $95,000. What amount should Baker report as net assets released from restrictions for the current year?

a.	$0
b.	$6,000
c.	$95,000 answer
d.	$125,000

program expense is 95000, how come it becomes net asset release? please explain

2. Functional expenses recorded in the general ledger of ABC, a non-governmental not-for-profit organization, are as follows:

Soliciting prospective members	$45,000
Printing membership benefits brochures	30,000
Soliciting membership dues	25,000
Maintaining donor list	10,000

What amount should ABC report as fund-raising expenses?

a.	$10,000, answer
b.	$35,000
c.	$70,000
d.	$110,000

please explain what is fund rasing expense, and what is other.

3. Child Care Centers, Inc., a not-for-profit organization, receives revenue from various sources during the year to support its day care centers. The following cash amounts were received during Year 1.

• $2,000 restricted by the donor to be used for meals for the children.

• $1,500 received for subscriptions to a monthly child care magazine with a fair market value to subscribers of

$1,000.

• $10,000 to be used only upon completion of a new playroom that was 75% complete at December 31, Year 1.

What amount should Child Care Centers record as contribution revenue in its Year 1 Statement of Activities?

a.	$2,000
b.	$2,500, answer
c.	$10,000
d.	$11,000

please explain how to determine the contribution revenue and why. thanks !