Question
Jim Cattle establishes a trust that is administered by Mansfield National Bank in the amount of $750,000. Jim has promised that he will donate an
Jim Cattle establishes a trust that is administered by Mansfield National Bank in the amount of $750,000. Jim has promised that he will donate an additional $50,000 a year to the trust in each of the next 5 years .The income from the trust will go to the state university .How much should the university record as income in the year that the trust is established?
A 1,000,000
B 750,000 PLUS PRESENT VALUE OF THE FIVE $50,000 DONATIONS
C 750,000
D 0
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Auditing and Assurance services an integrated approach
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
14th Edition
978-0132575959
