|Due By (Pacific Time)
||12/18/2016 09:00 am
Accounting for Contributions Vary by Use
Green Hills County received the following two contributions during a year:
- A developer (in exchange for exemptions to zoning restrictions) donated several acres of land that the county intended to convert to a park. The land had cost the developer $1.7 million. At the time of the contribution its fair market value was $3.2 million.
- A local resident donated several acres of land to the county with the understanding that the county would sell the land and use the proceeds to fund construction of a county health center. The land had cost the resident $2.5 million. The county sold the land intended for the health center for $3 million thirty days after the end of its ï¬scal year.
- Prepare journal entries to record the contributions. Be sure to specify the appropriate fund in which they would likely be made.
- Comment on and justify any differences in the way you accounted for the two contributions.
- Comment on how each of the contributions would be reported on the county’s government-wide statements.
- How would your answers differ if the land intended for the health center were not sold by the time year-end financial statements were issued?
- Submit your responses to the following questions in a 1-2 page document in MS Word. Label each question clearly. Please include computations in a table.
- For written answers, please make sure your responses are grammatically correct and free from spelling errors.
- Follow the APA Requirements.
- Cite at least two sources