Author Question: A college was the recipient of an annuity gift. The elderly alum donated cash of 110,000 and ... (Read 100 times)

Awilson837 · **on:** Jul 5, 2018

A college was the recipient of an annuity gift. The elderly alum donated cash of 110,000 and investments of 610,000 with the restriction that the college pay them a sum of 50,000 per year for five years and immediately retire a note payable of

45,000 . If the annuity payable has been actuarially valued at 305,000, the college should report revenues upon receipt of the gift in the amount of
a. 0
b. 120,000
c. 370,000
d. 425,000
e. 720,000

Question 2

Back-office functions include:
a. customer interface
b. supplier interface
c. purchasing
d. accounting