Use the information below to answer questions 20-23. Sarah Winchell pledged $500,000 to a nonprofit entity in 2020 to conduct medical research, conditional on the nonprofit entity raising matching funds of $500,000 from other donors. By the end of 2020, other donors pledged matching donations of $50,000 toward the goal of $500,000, and it was considered reasonably possible that additional pledges of $450,000 would not be received. However, by the end of 2021, matching donations had reached the $500,000 goal. As a result, Ms. Winchell made good on her pledge and contributed $500,000 to the nonprofit entity in 2022. The nonprofit entity used all of the donations, including the matching donations, for medical research in 2023. 20. .A. B. C. D. 21. A. B. C. D. 22. .A. B. C. D. Which of the following statements is correct for 2020? Pledges receivable of $50,000 is reported under assets on the statement of financial position at December 31, 2020. A refundable advance of $500,000 is reported under liabilities on the statement of financial position at December 31, 2020. A and B. Neither A nor B. Which of the following statements is correct for the statement of activities for the year ended December 31, 2021? The amount reported for net assets with donor restrictions increased $950,000. There was no effect on the amount reported for net assets without donor restrictions. A and B. Neither A nor B. Which of the following statements is correct for the year ended December 31, 2022? The receipt of the pledge had no effect on total assets reported on the statement of financial position at December 31, 2022. On the statement of activities for the year ended December 31, 2022, the contributions made for medical research had no effect on the amount reported for net assets with donor restrictions. A and B. Neither A nor B. 23. Which of the following statements is correct for the statement of activities for the year ended December 31, 2023? A. B. A reclassification of $1,000,000 is reported from net assets with donor restrictions to net assets without donor restrictions. The use of the donations for medical research had no effect on the amount reported for net assets without donor restrictions. C. A and B. D. Neither A nor B. 24. Services were donated to a nonprofit entity that did not enhance a nonfinancial asset. For the nonprofit entity to recognize contribution revenue from the donated services, the services A. B. C. D. E. Require specialized skills. Are performed by persons possessing those specialized skills. Would need to be purchased and paid for if not donated. A and B. A. B, and C. 25. A private foundation made a multi-year pledge to a nonprofit entity on December 31, 2020. The foundation pledged to contribute $10,000 per year for each year for five years, beginning on December 31, 2021. Using a discount rate of 6%, the present value of the five payments was $42,124 as of December 31, 2020. No purpose restrictions were placed on the amount pledged. For the nonprofit entity, which of the following statements is correct for the statement of activities for the year ended December 31, 2020? A. The amount reported for net assets with donor restrictions increased $42,124. B. There was no effect on the amount reported for net assets without donor restrictions. C. A and B. D. Neither A nor B. 26. Refer to the previous question. On the statement of activities for the year ended December 31, 2021, which of the following statements is correct? A. Contribution revenue of $2,527 (rounded) should be reported under the column that reports net assets with donor restrictions. B. A reclassification of $10,000 should be reported from net assets with donor restrictions to net assets without donor restrictions. C. A and B. D. Neither A nor B