A private,not-for-profit hospital received a donation of medicine from the XYZ Pharmaceutical Company on March 15,20X9.The cost of the medicine to the company was $66,000,and its market value was $110,000.Twenty percent of the medicine was used by the hospital during the year ended June 30,20X9.On the hospital's statement of operations for the year ended June 30,20X9,the contribution of medicine would increase operating revenues by:

Question

Quizplus · Accepted Answer

The correct answer is the market value of the donation at the time it was received, which is $110,000. Non-profit accounting standards require recording donations at their fair market value at the time of receipt.

A Private,not-For-Profit Hospital Received a Donation of Medicine from the XYZ