Explanation: (in 000s) 1. Amortization of hockey arena (600 x 1/40 x 4/12) = 5 2. Amortization of equipment (60 x 1/10 x 4/12) = 2 3. Accounts receivable (10% x 50) = 5 4. Unearned revenue [50% x (20 + 40)] = 30 (a) Operating grant (45 + 5) = $50 Registration fees (20 / 2) = 10 Rental income (40 / 2) = 20 Operating expenses (102 + 3) = 105 (b) The average cost per child for running the association for Year 5 was $228.2 (($105,000 + $7,000 + $2,100) / 500 children)