In the current year, the not-for-profit organization Save the Butterflies Foundation received cash of $500 to be used as the Foundation wishes and $1,000 to be used for butterfly research. Save the Butterflies also received pledges of $700 that it can use as it wishes and $600 for its building fund. All pledges are expected to be received next year. How much would Save the Butterflies report as contributions with donor restrictions in the current year?

Question

Quizplus · Accepted Answer

Contributions with donor restrictions include the $1,000 for butterfly research and the $600 for the building fund, totaling $1,600. Additionally, the $700 pledged for unrestricted use is not considered restricted, making the total contributions with donor restrictions $1,600. However, the correct calculation should include both the cash received and pledges made for specific purposes, which are $1,000 for research and $600 for the building fund, totaling $1,600. The error in explanation was acknowledging the correct components but incorrectly summing them in the final explanation. The correct total of contributions with donor restrictions for the current year is $1,600, not $2,300, making the initial choice and explanation inconsistent with the correct calculation. The correct answer, based on the calculation provided, should be B) $1,600, not D) $2,300. This was an oversight in the explanation process.

In the Current Year, the Not-For-Profit Organization Save the Butterflies