At the beginning of Year 1, the entity above received $50,000 in cash as a gift with the stipulation that the money be used to buy a bus. The accountant made the appropriate entry at that time. On the first day of Year 2, the entity spent the $50,000 for the bus, an asset that will last for 10 years and will have no salvage value. Because the money came from an outside donor, entity officials decided that a time restriction on the bus should be assumed for 10 years. In Year 2, it reported 5,000 as
- a. What was the correct amount of unrestricted net assets at the end of Year 2?
- b. What was the correct amount of expenses for Year 2?
- c. What was the correct amount of temporarily restricted net assets at the end of Year 2?
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