Chapter 14, Problem 14.7EP

The Maryville Cultural Center recently conducted a successful talent show in which local talent performed for a nominal prize. The talent show is an ongoing major event and is central to the center’s mission. The event raised $4,800 in gross revenue. Expenses related to the event included $1,000 to rent an auditorium, $1,200 to advertise the event, $500 for trophies and other awards for the winner and the runners up, and $100 for printing and mailing tickets. The center believes there was no monetary value received by donors (attendees). To report this event in its statement of activities, the center will report

1. a.      Special event revenue of $4,800 and special event expense of $1,500.
2. b.      Special event revenue of $4,800 and fund-raising expense of $1,300.
3. c.       Special event revenue of $2,300 and fund-raising expense of $1,300.
4. d.      Both a and b are correct.