A donor gives Charity 1 $50,000 in cash that it must convey to Charity 2. However, the donor can reconsider and revoke the gift at any time prior to its conveyance to Charity 2. Which of the following statements is true?a. Charity 1 should report a contribution revenue.b. The donor continues to report an asset even after it is given to Charity 1.c. As soon as the gift is made to Charity 1, Charity 2 should recognize a contribution revenue.d. As soon as the gift is made to Charity 1, Charity 2 should recognize an asset.
A donor gives Charity 1 $50,000 in cash that it must convey to Charity 2. However, the donor can reconsider and revoke the gift at any time prior to its conveyance to Charity 2. Which of the following statements is true?a. Charity 1 should report a contribution revenue.b. The donor continues to report an asset even after it is given to Charity 1.c. As soon as the gift is made to Charity 1, Charity 2 should recognize a contribution revenue.d. As soon as the gift is made to Charity 1, Charity 2 should recognize an asset.
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 38P
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A donor gives Charity 1 $50,000 in cash that it must convey to Charity 2. However, the donor can reconsider and revoke the gift at any time prior to its conveyance to Charity 2. Which of the following statements is true?
a. Charity 1 should report a contribution revenue.
b. The donor continues to report an asset even after it is given to Charity 1.
c. As soon as the gift is made to Charity 1, Charity 2 should recognize a contribution revenue.
d. As soon as the gift is made to Charity 1, Charity 2 should recognize an asset.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT