Question 23 (1 point) '9 Listen b A capital asset (equipment) with a fair value of $1,500,000 and land with a fair value of $2,000,000 is donated to a not-for-prot organization on January 1, 2020. The equipment has a ten year useful life. The organization will use the equipment in its operations. The NFPO has a December 31 year end. What are the initial journal entries on January 1, 2020 that need to be made if the organization uses the deferral method for contributions? 0 In the Capital Fund, Debit Equipment and Credit Contribution revenue-donated equipment for $1,500,000; and in the Capital Fund, Debit Land and Credit Contribution revenue - donated land for $2,000,000. 0 Debit Equipment and Credit Deferred Contributions capital for $1,500,000 and Debit Land and Credit Net assets donated land for $2,000,000 0 Debit Equipment and Credit Net assets - capital for $1,500,000; and Debit Land and Credit Net assets donated land for $2,000,000 0 Debit Equipment and Credit Deferred Contributions - capital for $1,500,000; and Debit Land and Credit Deferred Contributions- capital for $2,000,000 Question 24 (1 point) 1)) Listen b Quick Care, a not-for-profit organization, received an externally restricted contribution. Quick Care does not have a separate restricted fund for the contribution. Under the restricted fund method, the contribution will be recognized as which of the following? 0 A direct increase to net assets O Revenue in the general fund using the deferral method 0 Revenue in the general fund for unrestricted contributions 0 Revenue in the endowment fund Question 25 (1 point) !) Listen ' h Do-Good Inc. is a not-forprofit organization that was formed on January 1, 2020. Do-Good has a December 31 year end. It has an accounting policy of capitalizing and amortizing its capital assets. On April 1, 2020, Do-Good purchased equipment costing $8,000. The equipment is estimated to have a useful life of 4 years, with no residual value at that time. This transaction was the only transaction that took place to date. The equipment was purchased from an unrestricted contribution of $8,000. In which fund would the receipt of the unrestricted contribution be recorded? 0 The endowment fund 0 The general fund 0 The capital fund 0 The encumbrance fund