During the year, Goodman College received the following:
-An unrestricted $280,000 pledge to be paid the following year
-A $140,000 cash gift restricted for study-abroad scholarships
-A notice from a recent business school graduate that he has named the college as a beneficiary of $60,000 in his will
What amount of contribution revenue should Goodman College report in its statement of activities?
A)$140,000
B)$200,000
C)$420,000
D)$480,000

Question

During the year, Goodman College received the following: 
-An unrestricted $280,000 pledge to be paid the following year
-A $140,000 cash gift restricted for study-abroad scholarships
-A notice from a recent business school graduate that he has named the college as a beneficiary of $60,000 in his will
What amount of contribution revenue should Goodman College report in its statement of activities?
A)$140,000
B)$200,000
C)$420,000
D)$480,000

Quizplus · Accepted Answer

- The unrestricted pledge of $280,000 is not considered contribution revenue until it is actually received, so it is not included in this calculation.
- The $140,000 restricted cash gift is considered contribution revenue because it was received during the year for a specific purpose.
- The $60,000 bequest from the graduate is also considered contribution revenue because it is a promise of future payment to the college.
Therefore, the total contribution revenue is $140,000 + $60,000 = $200,000.

During the Year, Goodman College Received the Following