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 net assets with donor restrictions?
A)$50,000
B)$60,000
C)$10,000
D)$110,000

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 net assets with donor restrictions?
A)$50,000 
B)$60,000 
C)$10,000 
D)$110,000

Quizplus · Accepted Answer

The correct amount to report under the classifications of net assets with donor restrictions is $110,000. This is because the sum of specific donations that are restricted by donors for particular purposes or time frames should be classified under this category. Without specific details from Golden Path's statement, the correct answer aggregates the amounts that would typically fall under donor restrictions, assuming the question implies such conditions.

Golden Path,a Labor Union,had the Following Receipts and Expenses for the Year