January 1, 2017, a foundation made a pledge to pay $28,000 per year at the end of each of the next five years to the Cancer Research Center, a nonprofit voluntary health and welfare organization, as a salary supplement for a well-known researcher. On December 31, 2017, the first payment of $28,000 was received and paid to the researcher.On the books of the Cancer Research Center, record the pledge on January 1 in the temporarily restricted asset class, assuming the appropriate discount rate is 5 percent on an annual basis. The appropriate discount factor is 4.33.Record the increase in the present value of the receivable in the temporarily restricted net asset class as of December 31.Record the receipt of the first $28,000 on December 31 and the payment to the researcher. Indicate in which asset class (unrestricted, temporarily restricted) each account is recorded.Record the entry for receipt of first paymentRecord the entry for expiration of time restrictionsRecord the entry for salary payment to researcher

10-7. On January 1, the Voluntary Action Agency received a cash contribution of $325,000 restricted to the purchase of buses to be used in transporting senior citizens. On January 2 of that same year, buses were purchased with the $325,000 cash. The buses are expected to be used for five years and have no salvage value at the end of that time. 1. Record the journal entries on January 1, January 2, and December 31 for the receipt of cash, the purchase of buses, and one year's depreciation, assuming that plant assets are recorded as unrestricted assets at the time of purchase. 2. Record the journal entries on January 1, January 2, and December 31 for the receipt of cash, the purchase of buses, and one year's deprecia- tion, assuming that plant assets purchased with restricted resources are recorded as temporarily restricted assets at the time of purchase and reclassified in accord with the depreciation schedule. 3. Compute the amount that would be included in net assets (after closing the books on December 31) for (a) unrestricted net assets and (b) tempo- rarily restricted net assets under requirements 1 and 2. What incentives might exist for the Voluntary Action Agency to choose either alternative