Question

At the beginning of the year, the Baker Fund, a nongovernmental not-for-profit corporation, received a $125,000 contribution restricted to youth activity programs. During the year, youth activities generated revenues of $89,000 and had program expenses of $95,000. What amount should Baker report as net assets released from restrictions for the current year?

Answer 1

Amount $95,000 should Baker report as net assets released from restrictions for the current year

Explanation:

here the net amount assets are released from restriction and we know the $125,000 contributed for youth activity programs and $95,000 expenses and $89,000 revenues generated by youth activities is irrelevant here so Amount $95,000 should Baker report as net assets released from restrictions for the current year