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I have an upload. I just need to check my answer again. (It's not complete yet.) Case #8 On January 1, the Old Town Heart
I have an upload. I just need to check my answer again. (It's not complete yet.)
Case #8 On January 1, the Old Town Heart Association received a $1,000,000 endowment from the Chamber family. Under terms of the gift, the Association must permanently restrict the endowmentbut may spend up to half of the interest earned on the gift or half of all profits earned from selling such investments for operating purposes. The Association immediately invested the gift proceeds in some \"blue chip\" stocks. Afterwards, the Association spent half of the $50,000 dividends earned from the Chamber portfolio for operating purposes. Where in the Statement of Cash Flows (i.e., operating, investing, or financing activities) should the Association report these transactions? Problem Identification: Where in the Statement of Cash Flows (i.e., operating, investing, or financing activities) should the Association report these transactions? Keywords: Disclosure, statement of cash flows, restricted/permanent endowment Research General Research FASB ASC 958-230-55-3 Further Research Planned giving and Design Center General Rule ASC Codification.... Conclusion Per Topic 230, such a cash receipt that is restricted for specific purpose shall be reported as a cash flow from financing activities, and it shall be reported as a cash outflow from investing activitiesStep by Step Solution
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