A not-for-profit organization was the recipient of a significant fixed asset donation. The assets, a building valued at $82,000, and one acre of land, valued at $210,000, are going to be used by the organization for office space and parking. The donor's net book value of the building was $22,000, and of the land, $65,000. The not-for-profit organization should record the assets at a total value of

Question

Quizplus · Accepted Answer

The correct answer is to record the assets at their fair market value at the time of donation, which is $82,000 for the building and $210,000 for the land, totaling $292,000. The donor's net book value is not relevant for the recipient's accounting.

A Not-For-Profit Organization Was the Recipient of a Significant Fixed