A voluntary health and welfare entity receives a gift of new furniture having a fair value of $2,100. The group then gives the furniture to needy families following a flood. How should the charity record receipt and distribution of this donation? Choose the correct.a. Make no entry.b. Record contributed support of $2,100 and community assistance expense of $2,100.c. Recognize revenue of $2,100.d. Recognize contributed support of $2,100 and community expenditures of $2,100.
A voluntary health and welfare entity receives a gift of new furniture having a fair value of $2,100. The group then gives the furniture to needy families following a flood. How should the charity record receipt and distribution of this donation? Choose the correct.a. Make no entry.b. Record contributed support of $2,100 and community assistance expense of $2,100.c. Recognize revenue of $2,100.d. Recognize contributed support of $2,100 and community expenditures of $2,100.
Chapter5: Deductions For And From Agi
Section: Chapter Questions
Problem 27MCQ
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A voluntary health and welfare entity receives a gift of new furniture having a fair value of $2,100.
The group then gives the furniture to needy families following a flood. How should the charity record receipt and distribution of this donation? Choose the correct.
a. Make no entry.
b. Record contributed support of $2,100 and community assistance expense of $2,100.
c. Recognize revenue of $2,100.
d. Recognize contributed support of $2,100 and community expenditures of $2,100.
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