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. HELP & SAVE Statement of Financial Position January 1, 2017 Assets Cash $ 1,720,000 Contributions receivable (net) 190,000 Investments 420,000 Buildings & equipment (net) 820,000 Total assets $ 3,150,000 Liabilities Accounts payable and accrued liabilities $ 122,000 Notes payable 1,220,000 Total liabilities $ 1,342,000 Net Assets Unrestricted $ 1,220,000 Temporarily restricted 466,000 Permanently restricted 122,000 Total net assets $ 1,808,000 Total liabilities and net assets $ 3,150,000

SWIM FOR SAFETY Statement of Financial Position January 1, 2017 Assets Cash $ 632,000 Contributions receivable (net) 330,000 Investments 290,000 Buildings & equipment (net) 710,000 Total assets $ 1,962,000 Liabilities Accounts payable and accrued liabilities $ 190,000 Notes payable 740,000 Total liabilities $ 930,000 Net Assets Unrestricted $ 540,000 Temporarily restricted 202,000 Permanently restricted 290,000 Total net assets $ 1,032,000 Total liabilities and net assets $ 1,962,000 The buildings and equipment reported by Help & Save have a fair value of $1,020,000. The buildings and equipment reported by Swim For Safety have a fair value of $862,000. Assume Help & Save pays $1.21 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? Assume Help & Save pays $1,200,000 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? Assume that these two organizations are combined into a new private not-for-profit entity to be known as HelpSwimSave. 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?