The Following Information Applies to the Next Three Questions

Multiple Choice

The following information applies to the next three questions:
A private foundation made a multi-year pledge to a private college on December 31, 2013, the last day of the fiscal year. The pledge was to pay $12,000 per year each year for five years, beginning on December 31, 2014. The discount rate is 6%. The present value of five payments of $12,000 is $50,548. The present value of four payments of $12,000 is $41,581. No purpose or plant restrictions were involved.
-In 2013 a faculty member at a private college received a grant from the National Science Foundation to conduct basic research on tree frogs in the amount of $500,000.Expenses associated with the grant totaled $290,000 in 2014.In the Statement of Activities for 2014,the college should show:

A) Temporarily Restricted Revenues of $500,000 and Unrestricted expenses of $290,000.
B) Temporarily Restricted Revenues of $290,000 and Unrestricted expenses of $290,000.
C) Revenues of $290,000 and expenses of $290,000 in Unrestricted Net Assets.
D) Expenses of $ 290,000 in Unrestricted Net Assets and a decrease in Temporarily Restricted Net Assets of $ 290,000