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Problem 18-45 (Static) (LO 18-1, 18-2, 18-4, 18-5, 18-8) [The following information applies to the questions displayed below] For a number of years, a private

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Problem 18-45 (Static) (LO 18-1, 18-2, 18-4, 18-5, 18-8) [The following information applies to the questions displayed below] For a number of years, a private not-for-profit entity has been preparing financial statements that do not necessarily conform to U.S. generally accepted accounting principles. At the end of the most recent year (Year 2), those financial statements show total assets of $900,000 total liabilities of $100.000, net assets without donor restriction of $400,000 and net assets with donor restrictions of $400,000. This last category is composed of $300,000 in net assets with purpose restrictions and $100,000 in net assets that must be permanently held. At the end of Year 1, financial statements show total assets of $700,000, total liabilities of $60,000, net assets without donor restriction of $340,000, and net assets with donor restrictions of $300,000. This last category is composed of $220,000 in net assets with purpose restrictions and $80,000 in net assets that must be permanently held. Total expenses for Year 2 were $500,000 and reported under net assets without donor restrictions. Each part that follows should be viewed as an independent situation Problem 18-45 Part Four Assume that this entity charges its members $100,000 each year (Year 1 and Year 2). The members get nothing in return for their dues The entity has consistently recorded the cash collections as an increase in cash and an increase in exchange revenues under net assets without donor restrictions. The board of trustees has had a policy for several years that 10 percent of the money collected be set aside and invested with the money held for emergency purposes. Cash is decreased and investments held for emergencies are increased with each purchase Required: A on purchase. ropriate amount of net assets without donor restrictions at the end of Year 1? or restrictions at the end of Year 1 ropriate amount of net assets without donor restrictions at the end of Year 2? r restrictions at the end of Year 2

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