ACCOUNTING F/GOVT+NONPROFIT CONNECT+>I
17th Edition
ISBN: 9781308820217
Author: RECK
Publisher: Mcgraw-Hill/Create
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Chapter 13, Problem 17EP
To determine
Identify whether each of the given scenario’s purpose, audience, and content meet the criteria and FASB ASC 958-720-45, thus, the joint costs can be allocated between programs and support expenses. Explain the reasons.
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Everyone was affected by the economic impacts of COVID-19 including nonprofits. Donations plummeted and volunteers dried up but the community's need for help only grew. The table below provides information for the Transformation Station, a nonprofit that focuses on people experiencing homelessness for the first time. Transformation Station has determined they need a bigger storage facility. They first need to perform a sensitivity analysis to determine whether to build a larger storage facility. Part 1: Perform a sensitivity analysis (aka net present value) for the three options above. Show work
Part 2: Remember that we have very little control over whether the Conservative, Most Likely, or Optimistic Estimate is realized. In other words, this analysis is similar to saying, "Well, we don't know exactly how much it will cost or how much you will save. However, we have done some analysis - based on the current economic environment - and we believe it will be somewhere between the…
The board of directors of Earth Rock's!, a nonprofit organization focused on environmental protection, hypothesizes that individuals are more likely to donate if they see evidence that their donations are used primarily for program activities rather than administrative and fund-raising costs. To get a sense of how its own cost structure compares to other groups, the board decides to benchmark the financial performance of Earth Rocks! against several other environmental organizations. The data for Earth Rocks! and the other environmental organizations appear below
Program Expenditures
Fund-raising Costs
Administrative Costs
Total Costs
Earth Rocks
374,900
98,000
121,400
594,300
Weed Lovers
421,000
104,300
98,350
623,650
Flora and Fauna
353,000
97,600
71,840
522,840
Leaf It Be
501,900
89,000
109,750
700,650
Nature's Gift
455,470
71,000
82,450
608,920
Use these data to benchmark Earth Rocks! against the other environmental organizations. How does Earth Rocks! compare to…
Which of the following would likely NOT avoid UBIT for an exempt organization?
A. The activity is regularly carried on by the organization.
B. The individuals who perform substantially all of the work are volunteers.
C. The activity is carried on for the benefit of its members.
D. The majority of the items sold have been donated to the organization.
Chapter 13 Solutions
ACCOUNTING F/GOVT+NONPROFIT CONNECT+>I
Ch. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - What criteria must be met before an NFP...Ch. 13 - Prob. 9QCh. 13 - What are joint costs, and how are joint costs...
Ch. 13 - Prob. 11CCh. 13 - Prob. 13CCh. 13 - Prob. 14.1EPCh. 13 - Prob. 14.2EPCh. 13 - Prob. 14.3EPCh. 13 - In a local NFP elementary schools statement of...Ch. 13 - Prob. 14.5EPCh. 13 - Prob. 14.6EPCh. 13 - The Maryville Cultural Center recently conducted a...Ch. 13 - Prob. 14.8EPCh. 13 - Prob. 14.9EPCh. 13 - Prob. 14.10EPCh. 13 - Prob. 15EPCh. 13 - Donated Services. (LO14-3) Indicate whether each...Ch. 13 - Prob. 17EPCh. 13 - Prob. 18EPCh. 13 - Statement of Activities. The Atkins Museum...Ch. 13 - Prob. 20EPCh. 13 - Prob. 21EPCh. 13 - Prob. 22EPCh. 13 - Prob. 23EPCh. 13 - Prob. 24EP
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