A not-for-profit organization receives donated supplies valued at $40,000 in June. As of the fiscal year end December, 31, 20X3, the organization had used 25% of the materials. The organization should report

Question

Quizplus · Accepted Answer

The organization should report the full value of the donated supplies as unrestricted contributions ($40,000) since there's no indication they were restricted by the donor. They should also report expenses of $10,000, which represents the 25% of the materials used by the fiscal year end.

A Not-For-Profit Organization Receives Donated Supplies Valued at $40,000 in June