Questions from Advanced Accounting

Q: Herbert, Inc., acquired all of Rambis Company’s outstanding stock on

Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2020, for $574,000 in cash. Annual excess amortization of $12,000 results from this transaction. On the date of the take...

Q: A not-for-profit entity reports contributed services valued at

A not-for-profit entity reports contributed services valued at $38,000. How was the decision made to report these services?

Q: A not-for-profit museum receives a painting by Monet

A not-for-profit museum receives a painting by Monet valued at $750,000. The museum chose not to report the painting on its financial statements. What are the rules for such reporting?

Q: A donor conveys a gift to a charity that is to be

A donor conveys a gift to a charity that is to be conveyed to a separate beneficiary. What is the normal method for each party to report this transfer?

Q: Sunshine NFP, a private not-for-profit entity,

Sunshine NFP, a private not-for-profit entity, gains control over Dancing Ducks NFP, another not- for-profit entity. The acquisition price is $2.5 million although the identifiable assets and liabilit...

Q: Helping Hand NFP is a private not-for-profit entity

Helping Hand NFP is a private not-for-profit entity that has equipment with a net book value of $1.1 million but a fair value of $1.4 million. Fancy Fingers NFP is also a private not-for-profit entity...

Q: A private not-for-profit entity applies for and receives

A private not-for-profit entity applies for and receives status as a 501(c)(3) organization. What is the importance of this tax-exempt status?

Q: In the reporting of a private not-for-profit health

In the reporting of a private not-for-profit health care entity, officials are allowed to apply a portfolio approach. What is meant by a portfolio approach?

Q: A private not-for-profit health care entity charges patients

A private not-for-profit health care entity charges patients $4 million that will be covered by various government programs. These programs are entitled to $1.9 million in explicit price concessions....

Q: What are net assets without donor restrictions?

What are net assets without donor restrictions?