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- A private not-for-profit entity is working to create a cure for a deadly disease. The charity starts the year with cash of $709,000. Of this amount, unrestricted net assets total $403,000, temporaril restricted net assets total $203,000, and permanenetly restricted net assets total $103,000. Within the temporarily restricted net assets, the entity must use 80 percent for equipment and the rest for salaries . No implied time restriction has been designated for the equipment when purchased. For the permanently restricted net assets, 70 percent of resulting income must be used to cover the purchase of advertising for fund-raising purposes and the rest is unrestricted. During the current year, the organization has the following transactions: 1. Received unrestricted cash gifts of $213,000. 2. Paid salaries of $83,000 with $23,000 of that amount coming from restricted funds. Of the total salaries, 40 percent is for administrative personnel and the remainder is evenly divided among…A private not-for-profit entity is working to create a cure for a deadly disease. The charity starts the year with cash of $700,000. Of this amount, unrestricted net assets total $400,000, temporarily restricted net assets total $200,000, and permanently restricted net assets total $100,000. Within the temporarily restricted net assets, the entity must use 80 percent for equipment and the rest for salaries. No implied time restriction has been designated for the equipment when purchased. For the permanently restricted net assets, 70 percent of resulting income must be used to cover the purchase of advertising for fund-raising purposes and the rest is unrestricted.During the current year, the organization has the following transactions:∙ Received unrestricted cash gifts of $210,000.∙ Paid salaries of $80,000 with $20,000 of that amount coming from restricted funds. Of the total salaries, 40 percent is for administrative personnel and the remainder is evenly divided among individuals…Maple Corp. owns several pieces of highly valued paintings that are on display in the corporation's headquarters. This year, it donated one of the paintings valued at $100,000 (adjusted basis of $25,000) to a local museum for the museum to display. b. What would be Maple's deduction if the museum sold the painting one month after it received it from Maple? Charitable contribution deduction
- A private not-for-profit entity receives two gifts. One is $80,000 and is restricted for paying salaries of teachers who help children learn to read. The other is $110,000, which is restricted for purchasing playground equipment. Both amounts are properly spent by the end of this year. Because the purchase of the playground equipment was made at the end of the year, the organization records no depreciation this period. It has elected to view the equipment as having a time restriction. On the statement of activities, what is reported for unrestricted net assets? An increase of $80,000 and a decrease of $80,000. An increase of $190,000 and a decrease of $190,000. An increase of $190,000 and a decrease of $80,000. An increase of $80,000 and no decrease.A private not-for-profit entity receives two gifts. One is $80,000 and is restricted for paying salaries of teachers who help children learn to read. The other is $110,000, which is restricted for purchasing playground equipment. Both amounts are properly spent by the end of this year. Because the purchase of the playground equipment was made at the end of the year, the organization records no depreciation this period. It has elected to view the equipment as having a time restriction. On the statement of activities, what is reported for unrestricted net assets?a. An increase of $80,000 and a decrease of $80,000.b. An increase of $190,000 and a decrease of $190,000.c. An increase of $190,000 and a decrease of $80,000.d. An increase of $80,000 and no decreaseThe Watson Foundation, a private not-for-profit entity, starts 2017 with cash of $100,000; contributions receivable (net) of $200,000; investments of $300,000; and land, buildings, and equipment of $200,000. In addition, its unrestricted net assets were $400,000, temporarily restricted net assets were $100,000, and permanently restricted net assets were $300,000. Of the temporarily restricted net assets, 50 percent must be used to help pay for a new building; the remainder is restricted for salaries. No implied time restriction was designated for the building when purchased. For the permanently restricted net assets, all income is unrestricted.During the current year, the entity has the following transactions:∙ Computed interest of $20,000 on the contributions receivable.∙ Received cash of $100,000 on the contributions and wrote off another $4,000 as uncollectible.∙ Received unrestricted cash gifts of $180,000.∙ Paid salaries of $90,000 with $15,000 of that amount coming from…
- The Watson Foundation, a private not-for-profit entity, starts 2017 with cash of $100,000; contributions receivable (net) of $200,000; investments of $300,000; and land, buildings, and equipment of $200,000. In addition, its unrestricted net assets were $400,000, temporarily restricted net assets were $100,000, and permanently restricted net assets were $300,000. Of the temporarily restricted net assets, 50 percent must be used to help pay for a new building; the remainder is restricted for salaries. No implied time restriction was designated for the building when purchased. For the permanently restricted net assets, all income is unrestricted. During the current year, the entity has the following transactions: Computed interest of $20,000 on the contributions receivable. Received cash of $100,000 on the contributions and wrote off another $4,000 as uncollectible. Received unrestricted cash gifts of $180,000. Paid salaries of $90,000 with $15,000 of that amount coming from…Aquamarine Corporation, a calendar year C corporation, makes the following donations to qualified charitable organizations during the current year: Adjusted Basis Fair Market Value Painting held four years as an investment, to a church, which sold it immediately $6,000 $10,000 Apple stock held two years as an investment, to United Way, which sold it immediately 15,750 35,000 Canned groceries held one month as inventory, to Catholic Meals for the Poor 2,520 4,200 Determine the amount of Aquamarine Corporation's charitable deduction for the current year. (Ignore the taxable income limitation.) Painting: The amount of the contribution is . Stock: The amount of the contribution is . Groceries: The amount of the contribution is . Therefore, the total charitable contribution is $fill in the blank 4. Feedback Area please do not provide solution in image format thank you!Good Charity is a new not-for-profit organization that opened in January 2020. It is funded by government grants and private donations. It prepares its annual financial statements using the deferral method of accounting for contributions and uses only one fund to account for all activities. Required: 1) Prepare all related journal entries for the following transactions for Good Charity for 2020: a) Jan 1: a donor contributes land for a future operations site. Land has a fair value of $32,000. b) Feb 1: A donor contributes $60,000 on the condition that the principal amount be invested in marketable securities and that only the income earned from the investment be spent on operations. Income of $2,000 was earned and received during 2020 on these investments. c) General donations of $85,000 were received during 2020. d) Feb 1: the government gave $80,000 to Good Charity to purchase equipment and furniture with a useful life of 10 years. This was all used to…