Case 2:Narda Corporation agreed to sell all of its capital stock to Effie Corporation for three monthly payments of $200,000. After Effie made the first required payment, it ceased making other payments. The stock subscription agreement states that Effie, thus, forfeits its payments and is entitled to no other future consideration. How should Narda record the $200,000 forfeited payment? Case 2 Solution: Problem Identification: How should a company account for forfeited stock subscriptions? Moreover, do such payments constitute operating or other income? Keywords: Stock Subscription; operating income; additional paid-in capital; owners equity; net income; operating income. Conclusion: Per 505-10-25-2, capital transactions that incur no future corporate obligations should be excluded from calculating net or operating income. Thus, the forfeited cash should become part of additional paid-in capital about any required disclosures for such transactions. The above is an example of a case, below is another case that should be done like the one above. Can you help by giving me the problem identification, keywords and conclusion? On January 1, the Hawaii Cancer Institute has received a promise from the Obama Foundation to receive a building that the Foundation recently appraised at $200,000but cost it only $125,000. The Institute promised to keep the building permanently restricted, i.e., never to sell it and to use it only for its work in helping cancer patients. After not receiving title by December 30, the Institute inquired as to the status of the promised building. The Foundation stated that water damage to the building (from last year s flood) has permanently reduced the carrying value of the building to $100,000. The Foundation had initially hoped to set up a fund drive to help clean up the building. However, both parties have agreed that as of December 31, this fund drive would not materialize and the date to receive the building would remain unknown. How should the Institute now record the promised gift