Question
Problem 18-38 (Static) (LO 18-1, 18-2,18-4) A private not-for-profit entity is working to create a cure for a disease. The charity starts the year with
Problem 18-38 (Static) (LO 18-1, 18-2,18-4) A private not-for-profit entity is working to create a cure for a disease. The charity starts the year with one asset, cash of $700,000. Net assets without donor restrictions are $400,000. Net assets with donor restrictions are $300,000. Of the restricted net assets, $160,000 is to be held and used to buy equipment, $40,000 is to be used for salaries, and the remaining $100,000 must be held permanently. The permanently held amount must be invested with 70 percent of any subsequent income used to cover advertising for fundraising purposes. The rest of the income is unrestricted. During the current year, this health care entity has the following transactions:
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