A 900000 b 920000 c 1000000 d 950000 78 what is the

Info icon This preview shows pages 26–29. Sign up to view the full content.

View Full Document Right Arrow Icon
A. 900,000 B. 920,000 C. 1,000,000 D. 950,000 78. What is the investment income for 2020 if Entity A elects cost method to account its Investment in Entity B in its separate financial statements? A. 7,000 B. 27,000 C. 180,000 D. 107,000 79. If Entity A elects fair value model to account its Investment in Entity B in its separate financial statements, what is the carrying amount of the Investment in Entity B on December 31, 2020? A. 900,000 B. 920,000 C. 1,000,000 D. 950,000 80. What is the net effect in profit or loss for 2020 if Entity A elects fair value model to account its Investment in Entity B in its separate financial statements? A. 7,000 B. 27,000 C. 180,000 D. 107,000
Image of page 26

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Page 27 Numbers 81, 82 and 83 (Nonprofit Organization – Statement of Financial Position) In the first year of operations of a nonprofit organization, the following transactions occurred: The nonprofit organization received P1,000,000 fund from a donor who stipulated that it shall be invested indefinitely and the dividend from such investment shall be used for research project of the organization. Dividend amounting to P150,000 was received during the year but only P50,000 was spent for the research project. The nonprofit organization received P300,000 fund from a donor who stipulated that it shall be used for the acquisition of service car. The nonprofit organization used P100,000 of the fund for the acquisition of a service car with useful life of 5 years. The car was acquired at the middle of the year. The nonprofit organization received P500,000 fund who stipulated that it shall be used based on the discretion of the Board of Trustees of the nonprofit organization. The nonprofit organization used P100,000 for the acquisition of souvenir items which were sold by the nonprofit organization for P150,000. The remaining P400,000 was designated by the Board of Trustees for future fundraising projects. 81. What is the amount of permanently restricted net assets at the end of the first year? A. 1,100,000 B. 1,300,000 C. 1,200,000 D. 1,000,000 82. What is the amount of temporarily restricted net assets at the end of the year? A. 100,000 B. 300,000 C. 200,000 D. 700,000 83. What is the amount of unrestricted net assets at the end of the year? A. 640,000 B. 540,000 C. 590,000 D. 630,000
Image of page 27
Page 28 Nonprofit Organization – Statement of Activities and Statement of Cash Flows Numbers 84, 85, 86 and 87 On January 1, 2020, a nonprofit organization received P1,000,000 cash donation from a donor who stipulated that the amount should be invested indefinitely in revenue producing investment. The deed of donation also provided that the dividend income shall be used for the acquisition of computers of the nonprofit organization. On December 31, 2020, the nonprofit organization received P100,000 cash as dividend income from the investment of the fund. On January 1, 2021, the nonprofit organization acquired a computer at a cost of P20,000 with a useful life of 5 years without residual value. 84. In the statement of activities of the NPO for the year ended December 31, 2020, which of the following is the proper effect of the transactions?
Image of page 28

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 29
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern