The following events relate to Habitat for Humanity International's activities. If appropriate, assume a discount rate of

Question:

The following events relate to Habitat for Humanity International's activities. If appropriate, assume a of 6 percent per annum.
1. In a telephone solicitation, a potential donor says he will contribute $500 in 30 days.
2. In a telephone solicitation, a potential donor requests that a pledge card be mailed, suggesting that a $250 contribution may be forthcoming.
3. A potential donor makes a documented promise to contribute $100,000 when Habitat for Humanity has raised $100,000 in matching funds; $40,000 in matching funds has been raised to date.
4. Same as 3. except that the potential donor promises to contribute up to $100,000 by giving $1 for each $1 of matching funds raised.
5. A group of college students helps build a house for Habitat for Humanity in inner city Los Angeles; Habitat for Humanity estimates the value of the group's services at $10,000.
6. A potential donor signs an agreement to contribute $15,000 now and $15,000 at the beginning of each of the next four years, to help pay for general operating expenses.
7. A donor contributes $200,000, stating that half is to be used to restore and build houses in upstate New York this year, and half is to be used for the same purpose next year.
8. At the beginning of the year, a donor contributes a building worth $4,000,000 and requires that it be used to house Habitat for Humanity's administrative offices over the building's 20-year remaining estimated useful life.
9. A registered plumber volunteers her services to install plumbing in several Habitat for Humanity houses. The plumber's services are valued at $5,000.
10. A donor contributes $1,000,000 of 4 percent bonds as an endowment to Habitat for Humanity. Income generated from the bonds is to be used to buy appliances for new houses. Donated between interest payment dates, the bonds' $1,060,000 value includes accrued interest of $25,000.
Required
In each case, identify (a) whether the item should be recorded as a contribution and (b) if recorded, the dollar amount of the item to be reported as unrestricted, temporarily restricted, or permanently restricted. Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...