Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. in 2014, a major drug company agreed to give a not

In 2014, a major drug company agreed to give a not-for-profit private college $1,700,000 to...

80.2K

Verified Solution

Question

Accounting

  1. In 2014, a major drug company agreed to give a not-for-profit private college $1,700,000 to perform testing of a new drug. An advance payment of $700,000 was received in 2014. The college was to receive $4,000 per individual test. In 2014, the college completed 100 tests. How much revenue should the college report for 2014?

A) $ - 0 - .

B) $ 400,000.

C) $ 700,000.

D) $1,700,000.

Answer: B please show the calculations

2. A private foundation made a multi-year pledge to a private college on December 31, 2013, the last day of the fiscal year. The pledge was to pay $12,000 per year each year for five years, beginning on December 31, 2014. The discount rate is 6%. The present value of five payments of $12,000 is $50,548. The present value of four payments of $12,000 is $41,581. No purpose or plant restrictions were involved.

1. The private college would:

A) Record interest revenue of $3,033 in 2013.

B) Record interest revenue of $3,033 in 2014.

C) Record contribution revenue of $3,033 in 2013.

D) Record contribution revenue of $3,033 in 2014.

Answer: D Show the calculation

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students