Help & Save is a private not-for-profit entity that operates in Kansas. Swim For Safety is a private not-for-profit entity that operates in Missouri. The leaders of these two organizations have decided to combine forces on January 1, 2017, in order to have a bigger impact from their work. They are currently discussing ways by which this combination can be created. Statements of financial position for both charities at that date appear below. $ 1,850,000 320,000 550,000 950,000 $ 3,670,000 HELP & SAVE Statement of Financial Position January 1, 2017 Assets Cash Contributions receivable (net) Investments Buildings & equipment (net) Total assets Liabilities Accounts payable and accrued liabilities Notes payable Total liabilities Net Assets Unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets $ 135,000 1,350,000 $ 1,485,000 $ 1,350,000 700,000 135,000 $ 2,185,000 $ 3,670,000 $ 775,000 460,000 420,000 840,000 $ 2,495,000 SWIM FOR SAFETY Statement of Financial Position January 1, 2017 Assets Cash Contributions receivable (net) Investments Buildings & equipment (net) Total assets Liabilities Accounts payable and accrued liabilities Notes payable Total liabilities Net Assets Unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets $ 320,000 870,000 $ 1,190,000 $ 670,000 215,000 420,000 $ 1,305,000 $ 2,495,000 The buildings and equipment reported by Help & Save have a fair value of $1,150,000. The buildings and equipment reported by Swim For Safety have a fair value of $1,005,000. a. Assume Help & Save pays $1.53 million in cash from its unrestricted net assets to gain complete control over Swim For Safety. It is not assumed that Swim For Safety will be predominantly supported by contributions and investment income in the future. What Total net assets Total liabilities and net assets $ 1,305,000 $ 2,495,000 The buildings and equipment reported by Help & Save have a fair value of $1,150,000. The buildings and equipment reported by Swim For Safety have a fair value of $1,005,000. a. Assume Help & Save pays $1.53 million in cash from its unrestricted net assets to gain complete control over Swim For Safety. It is not assumed that Swim For Safety will be predominantly supported by contributions and investment income in the future. What balances will appear on the combined balance sheet immediately after control is gained? b. Assume Help & Save pays $1,510,000 in cash from its unrestricted net assets to gain complete control over Swim For Safety. It is assumed that Swim For Safety will be predominantly supported by contributions and investment income in the future. What balances will appear on the combined balance sheet immediately after control is gained? C. Assume that these two organizations are combined into a new private not-for-profit entity to be known as Help-Swim-Save. A new governing body will be formed to manage and operate this new organization. What balances will appear on the combined balance sheet immediately after control is gained? Complete this question by entering your answers in the tabs below. Required A Required B Required Assume Heln & Save nave $1.53 million in cash from its unrestricted net assets to gain complete control over Swim For Assume Help & Save pays $1,510,000 in cash from its unrestricted net assets to gain complete control over Swim For Safety. It is assumed that Swim For Safety will be predominantly supported by contributions and investment income in the future. What balances will appear on the combined balance sheet immediately after control is gained? (Enter your answers in dollars not in millions.) Show less $ 0 Balances To Be Reported Cash Contributions receivable (net) Investments Buildings & equipment Total assets Accounts payable and accrued liabilities Notes payable Total liabilities Unrestricted net assets Temporarily restricted net assets Permanently restricted net assets Total net assets Total liabilities and net assets $ 0 0 $ 0 Required A Required B Required C Assume that these two organizations are combined into a new private not-for-profit entity to be known as Help-Swim-Save. A new governing body will be formed to manage and operate this new organization. What balances will appear on the combined balance sheet immediately after control is gained? (Enter your answers in dollars not in millions.) Balances To Be Reported Cash Contributions receivable (net) Investments Buildings & equipment Total assets $ 0 Accounts payable and accrued liabilities Notes payable Total liabilities $ 0 Unrestricted net assets Temporarily restricted net assets Permanently restricted net assets Total net assets 0 Total liabilities and net assets $ 0
