QUESTION 17 Wood City, which is legally obligated to maintain a debt service fund, issued the following general obligation bonds on July 1, Year 1: Term of bonds 10 years, Face amount $1,000,000, Issue price 95, Stated interest rate 6% Interest is payable January 1 and July 1. What amount of bond discount should be amortized in Wood's debt service fund for purposes of fund financial reporting for the year ended December 31, Year 1? $1,000 $500 $250 $0 QUESTION 18 A major difference between defined benefit pension plans and defined contribution pension plans is that Accounting for defined benefit plans Font much simpler than accounting for defined contribution plans. In a defined contribution plan, the risk of loss borne primarily by the employee O Employees generally are required to contribute to defined contribution plans but not to defined benefit plans. There is no major difference between the two kinds of pension plans. O QUESTION 15 A nongovernmental, not-for-profit organization received the following donations of corporate stock during the year: Donation 1 Donation 2 Number of shares 2,000 3,000 Adjusted basis $8,000 $5.500 Fair market value at time of donation 8,500 6,000 Fair market value at year end 10,000 What net value of investments will the organization report at the end of the year? $14,500 2,000 $14,000 $13,500 $12,000 QUESTION 16 Community Enhancers, a nongovernmental not-for-profit organization, received the following pledges: Unrestricted $400,000; Restricted for capital addition $300,000; All pledges are legally enforceable. However, Community's experience indicates that 15% of all pledges prove to be uncollectible. What amount should Community report as pledges receivable, net of any required allowance account? $700,000 O $665,000 $595,000 O None of above