The excess of expenses and losses over revenues would

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Financial Accounting: The Impact on Decision Makers
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Chapter 12 / Exercise 12-6A
Financial Accounting: The Impact on Decision Makers
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should not fall below $70,000. The excess of expenses and losses over revenues would be shown as a reduction in unrestricted net assets. The investments are being managed by an outside firm, so any mid-year investment transactions would not be recorded directly by the not-for-profit. XYZ wouldrecord the dividends received and the ending investment value as reported by the management firm.FASB ASC 958-205-45-14, 958-205-45-17, and Glossary
41) On January 1, Read, a nongovernmental not-for-profit entity, received $20,000 and an unconditional promise of $20,000 for each of the next four calendar years to be paid on the first day of each year. The present value of an ordinary annuity for four years at a constant interest rate of 8%is 3.312. What amount of restricted net assets is reported in the year the promise was received?
42) On December 30 of the current year, Haber Co. leased a new machine from Gregg Corp. The following data relate to the lease transaction at the inception of the lease:Lease term 10 yearsAnnual rental payable at the end of each lease year $100,000Estimated life of machine 12 yearsImplicit interest rate 10%Present value of an annuity of $1 in advance for10 periods at 10% 6.76Present value of an annuity of $1 in arrears for10 periods at 10% 6.15Fair value of the machine $700,000
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Financial Accounting: The Impact on Decision Makers
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Chapter 12 / Exercise 12-6A
Financial Accounting: The Impact on Decision Makers
Norton/Porter
Expert Verified
The lease has no renewal option, and the possession of the machine reverts to Gregg when the lease terminates. At the inception of the lease, Haber should record a lease liability of:

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