Golden Path, a labor union, had the following receipts and expenses for the year ended December 31, 20X8: The union's constitution provides that 12 percent of the per capita dues be designated for the strike insurance fund to be distributed for strike relief at the discretion of the union's executive board.
Based on the information provided, in Golden Path's statement of activities for the year ended December 31, 20X8, what amounts should be reported under the classifications of temporarily and permanently restricted net assets?
A) $0 and $110,000 respectively.
B) $110,000 and $0 respectively.
C) $60,000 and $50,000 respectively.
D) $50,000 and $60,000 respectively.

Question

Golden Path, a labor union, had the following receipts and expenses for the year ended December 31, 20X8:  The union's constitution provides that 12 percent of the per capita dues be designated for the strike insurance fund to be distributed for strike relief at the discretion of the union's executive board.
Based on the information provided, in Golden Path's statement of activities for the year ended December 31, 20X8, what amounts should be reported under the classifications of temporarily and permanently restricted net assets?
A) $0 and $110,000 respectively. 
B) $110,000 and $0 respectively. 
C) $60,000 and $50,000 respectively. 
D) $50,000 and $60,000 respectively.

Quizplus · Accepted Answer

The Answer of Golden Path, a labor union, had the following receipts and expenses for the year ended December 31, 20X8:  The union's constitution provides that 12 percent of the per capita dues be designated for the strike insurance fund to be distributed for strike relief at the discretion of the union's executive board.
Based on the information provided, in Golden Path's statement of activities for the year ended December 31, 20X8, what amounts should be reported under the classifications of temporarily and permanently restricted net assets?
A) $0 and $110,000 respectively. 
B) $110,000 and $0 respectively. 
C) $60,000 and $50,000 respectively. 
D) $50,000 and $60,000 respectively.

Golden Path, a Labor Union, Had the Following Receipts and Expenses