Question
Computer equipment used in the business office of a nonprofit organization was sold for $9,000. The original cost of the equipment had been $21,000 and
Computer equipment used in the business office of a nonprofit organization was sold for $9,000. The original cost of the equipment had been $21,000 and there was $15,000 of accumulated depreciation as of the date of sale. How will the gain be reported in the statement of activities?
| A. | Gain of $3,000 in changes in net assets with donor restrictions. | |
| B. | Gains are not recognized in nonprofit organizations. | |
| C. | Gain of $3,000 in changes in net assets without donor restrictions. | |
| D. | Net assets released from restrictions of $3,000. |
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Modern Auditing
Authors: Graham Cosserat
1st Edition
0471810584, 9780471810582
