A private sector not-for-profit hospital received a gift of $200,000 cash on the first day of 2017 with a donor restriction that the resources be used to purchase certain equipment. The equipment was purchased on the same day and is expected to last ten years with no salvage value. The Statement of Financial Position as of December 31, 2017 would reflect as net assets of:

Question

Quizplus · Accepted Answer

Depending on the policy of the hospital with respect of fixed assets purchased from donor restricted funds, the Statement of Financial Position as of December 31, 2017 would reflect as net assets of: $200,000 unrestricted and $0 temporarily restricted or $0 unrestricted and $200,000 temporarily restricted.

A Private Sector Not-For-Profit Hospital Received a Gift of $200,000