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i want this answer in 10min skip if u can't Assume that Charity A and Charity B are alike in every way except as described
i want this answer in 10min skip if u can't
Assume that Charity A and Charity B are alike in every way except as described below. Assume that each of these questions is independent from all other questions. a. Each charity suffers significant damage from a hail storm this year. Each hires a person to repair the damage Each of these workers donates the labor to the charity. Charity A looks at the repair work and believes it required a specialized skill that it would have had to buy. Charity B looks at the repair work and decides that it did not require a specialized skill. After the recording, which entity will report the largest amount of unrestricted net assets? b. Each charity receives a large investment in shares of a publicly traded company. The investment must be held forever. Charity A can spend the resulting income as it sees fit. Charity B must spend the resulting income to supplement salaries. Both charities receive the same amount of income this year. Both charities immediately spend the income to supplement salaries. After that, which entity will report the largest amount of unrestricted net assets? c. At the beginning of the current year, each charity combines with another similar charity. In both cases, this similar charity has assets worth $780,000 but with a book value of $700,000 and no liabilities. Both Charity A and Charity B paid $800,000 to make this acquisition. Charity A is acquiring a charity that gets its resources through exchange transactions (it sells cookies). Charity B is acquiring a charity that gets its money through donations. After that, which entity will report the largest amount of unrestricted net assets? d. Assume these two charities are both not-for-profit hospitals. On the first day of the year, each does an appendectomy on one of its patients. The cost is $76,000 but the normal charge to the patient is $100,000. Charity A had hoped to collect this amount, but by the end of the year it was obvious that collection was impossible. Charity B realized from the beginning that collection of any amount was impossible. After that, which entity will report the largest amount of net patient service revenues? e. Both Charity A and Charity B make 1,000 cakes to sell to their donors. These cakes cost $20 each and they are sold for $50 apiece. Charity A felt that $50 was a reasonable fair value. Charity B felt the fair value of the cakes was actually only $30 apiece. After that, which entity will report the largest amount of unrestricted net assetsStep by Step Solution
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