Required: Compute the amounts requested for the not for profit organization's statement of activities for the year ended 12/31/21. Enter your answers in the space provided below.

A private not for profit organization is working to create a cure for a deadly virus. Included in the

organization's temporarily restricted net assets are $4,000,000 for the purchase of equipment and $5,000,000 for operating expenses and $300,000 received in 2020 which could be used $150,000 per year for the period 2021-2022.

During 2021, the organization had the following transactions:

• Unrestricted cash gifts of $500,000 are received. The board released $700,000 of board designated funds.
• Equipment is bought for $600,000 which came from restricted funds. The equipment is used 80 percent for research purposes and 20 percent for management and general purposes. The depreciation for the year was $100,000.
• A donation of $700,000 with the stipulation that all the money be used for research.
• The organization received free legal advice for its membership program. The legal services were valued at $200,000. The legal services would have been purchased if not donated.
• Operating expenses for research were incurred- $800,000. The money came from restricted funds.
• Received a term endowment of $900,000. The income from the endowment could be used for any reason. The endowment agreement specified that the gift could be spent after the year 2030. Endowment income was $100,000.
• An unrestricted pledge of $500,000 that will be collected in four years is received . The present value of the pledge was $400,000. Interest of $20,000 is recognized in the year. In addition, an unrestricted pledge of $800,000 was received. The pledges were under the condition that the organization could raise $800,000 on their own. The organization has not raised the $800,000.
• Salaries of $1,000,000 are paid with $700,000 from restricted funds. Of the total salaries, 70 percent is for research, 20 percent for administration and 10 percent for fund raising.

Required: Compute the amounts requested

1. Amount of contributions without donor restrictions

2. Amount of contributions with donor restrictions

3. Amount of net assets released from resrictions

4. Amount of program expense

5. Amount of supporting expense

6. Disregard your answers to questions 4 & 5. Assume the organization had the following expenses:

research $ 1, 400,000, patient care $ 600,000, management & general $ 100,000, membership development $ 300,000 & fund raising $ 100,000 Compute the program expense ratio