Question

In the current year, the not-for-profit organization Save the Butterflies Foundation received cash of $500 to be used as the Foundation wishes and $1,000 to be used for butterfly research. Save the Butterflies also received pledges of $700 that it can use as it wishes and $600 for its building fund. All pledges are expected to be received next year. How much would Save the Butterflies report as temporarily restricted contributions in the current year?

A. $1,000.

B. $1,600.

C. $1,300.

D. $2,300.

Answer 1

The Save the Butterflies Foundation would report B) $1,600 as temporarily restricted contributions in the current year.

Step-by-step explanation:

The Save the Butterflies Foundation would report $1,600 as temporarily restricted contributions in the current year. Temporarily restricted contributions are donations that have restrictions placed on them by the donor for a specific purpose. In this case, the $1,000 received for butterfly research and the $600 received for the building fund are restricted for those specific purposes. Therefore, the total amount of temporarily restricted contributions is $1,000 + $600 = $1,600.