The Medical Arts Clinic,a well-established health care organization,received a $1,500,000 pledge in fiscal year 2015 that was restricted to cover operating expenses.The gift was received over two years;$600,000 in the first year and $900,000 in the second year.The following table reflects the funds received as well as the amounts spent on operating the clinic. $$\begin{array}{r}
\underline {\text { Fiscal Year Ended }} \quad \quad\
\begin{array} { l cc }
&\text { June 30, 2015 } &\text { June 30,2016 } \
\text { Gitts received } & \$ 600,000 & \$ 900,000 \
\text { Clinic operating expenses } & \$ 40,000 & \$ 1,020,000
\end{array}
\end{array}$$ What should the clinic report as Net Assets Released from Restrictions on the statement of activities for the fiscal year ended June 30,2016?

Question

The Medical Arts Clinic,a well-established health care organization,received a $1,500,000 pledge in fiscal year 2015 that was restricted to cover operating expenses.The gift was received over two years;$600,000 in the first year and $900,000 in the second year.The following table reflects the funds received as well as the amounts spent on operating the clinic. $$\begin{array}{r}
\underline {\text { Fiscal Year Ended }} \quad \quad\
\begin{array} { l cc } 
&\text { June 30, 2015 } &\text { June 30,2016 } \
\text { Gitts received } & \$ 600,000 & \$ 900,000 \
\text { Clinic operating expenses } & \$ 40,000 & \$ 1,020,000
\end{array}
\end{array}$$ What should the clinic report as Net Assets Released from Restrictions on the statement of activities for the fiscal year ended June 30,2016?

Quizplus · Accepted Answer

The Answer of The Medical Arts Clinic,a well-established health care organization,received a $1,500,000 pledge in fiscal year 2015 that was restricted to cover operating expenses.The gift was received over two years;$600,000 in the first year and $900,000 in the second year.The following table reflects the funds received as well as the amounts spent on operating the clinic. $$\begin{array}{r}
\underline {\text { Fiscal Year Ended }} \quad \quad\
\begin{array} { l cc } 
&\text { June 30, 2015 } &\text { June 30,2016 } \
\text { Gitts received } & \$ 600,000 & \$ 900,000 \
\text { Clinic operating expenses } & \$ 40,000 & \$ 1,020,000
\end{array}
\end{array}$$ What should the clinic report as Net Assets Released from Restrictions on the statement of activities for the fiscal year ended June 30,2016?

The Medical Arts Clinic,a Well-Established Health Care Organization,received a $1,500,000