- This topic has 5 replies, 4 voices, and was last updated 7 years, 4 months ago by .
-
Topic
-
I can’t figure out how to arrive at the correct answer for this problem (grrrrr…..) Can someone with a little better understanding of NFP accounting please explain it to me?
XYZ, a not-for-profit organization dedicated to animal welfare, received a $70,000 contribution at the start of 20X1 with donor instructions to maintain the original principal as a permanent endowment and use income and net gains for wildlife rehabilitation. The endowment principal was invested in a number of equity securities and mutual funds using an investment management firm. Investment performance and transactions were as follows in 20X1 and 20X2:
Year/ … /Dividends/ … /Sec. Sold/ … /Rehab Exp/ … /YE Value
20X1/ … /$3,000/ … /$1,000/ … /$3,500/ … /$72,000
20X2/ … /2,500/ … /0/ … /3,500/ … /69,000
XYZ believes that the donor intended for the endowment to remain at least at the original contributed value. What net asset values would be reported on the statement of financial affairs for 20X2 in relation to this endowment?
The correct answer is: Unrestricted $(500), Temp $0, Perm $70,000
I keep coming up with Unrestr $(2000), Temp $0, Perm $70,000 – going crazy here trying to figure this out. Any help would be greatly appreciated. Thank you.
V/R
- You must be logged in to reply to this topic.