1. In Year 1, Community Helpers, a private voluntary health and welfare organization, received a bequest of a

$100,000 certificate of deposit maturing in Year 11. The testator's only stipulations were that this certificate be held until maturity and that the interest revenue be used to finance salaries for a preschool program. Interest revenue for Year 11 was $8,000. When the certificate was redeemed, the board of trustees adopted a formal resolution designating $20,000 of the proceeds for the future purchase of equipment for the preschool program.

What should be reported as "unrestricted contributions" in the Year 11 statement of activity?

a. Investment income, $8,000.

b. Direct reduction of permanently restricted net assets of $20,000.

c. $0. answer

d. $108,000.

please explain why and how.!

2.

1. The City of Fox is evaluating which of its funds it will present as a major fund in its fund financial statements at December 31, Year 1. The city presents the following partial listing of asset data at December 31, Year 1:

Total Governmental Fund Type Assets	$ 3,000,000
Total Enterprise Fund Assets	2,000,000
General Fund Assets	280,000
Community Development Special Revenue Fund	290,000
Sales Tax Special Revenue Fund	350,000
General Revenue Bonds Debt Service Fund	120,000
Faberville River Bridge Capital Project Fund	1,500,000
Faberville Water & Sewer Utility Fund	1,800,000
Faberville Landfill	200,000

2. Based purely on assets, how many funds should be displayed as major funds?

	a.	Four. answer
	b.	Five.
	c.	Six.
	d.	Three.

please explain how to get it, and why.

3. Lily Township is preparing their statement of cash flows for their Water and Sewer Enterprise Fund and noted the following transactions:

Cash payments from customers	$ 250,000
Property tax receipts to subsidize operations	150,000
Special assessment receipts to defray the cost of improved wastewater infrastructure	50,000
Operating transfers out	(125,000)

Abbot Township's statement of cash flows should include which of the following amounts?

		Operating activities	Noncapital financing activities	Capital and related financing activities	Investing activities
	a.	$250,000	$25,000	$50,000	$0, answer
	b.	$275,000	$0	$50,000	$0
	c.	$400,000	($125,000)	0	$50,000
	d.	$250,000	$150,000	$50,000	($125,000)

please explain how to get it and why! thanks!