A donor contributed $1,000,000 to a not-for-profit hospital with the restriction that the funds be invested indefinitely and the income be used for cancer research. Which of the following would be true?
A. The gift would be recorded as an increase in permanently restricted net assets.
B. The income from the endowment would be recorded as an increase in temporarily restricted net assets.
C. Both of the above.
D. Neither of the above.
Answer: C
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New-to-the-world products can establish completely new markets or radically change the rules of competition as well as consumer preferences in a market.
Answer the following statement true (T) or false (F)
Scenario 8.2 Use the following to answer the questions. KFC opened its first franchised restaurant outside of North America in England in 1964. Now over a billion KFC chicken dinners are sold annually in more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menu--items such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the
store. This is a tradition for many restaurants in these countries--to offer the customer passing by a preliminary view of their product. Refer to Scenario 8.2. Suppose that KFC's parent company experienced difficulty in opening its restaurants in China unless KFC was willing to pay the government a "bribe." If KFC were to resort to paying this bribe in China saying that "it's different doing business there," this would be an example of A. a licensing arrangement. B. the self-reference criterion. C. cultural relativism. D. balance of trade issues. E. exchange controls.
Which of the following explains the capacity constraint for the Kansas plant?
A) X41 + X42 + X43 + X44 ? 3,000Y1 B) X41 + X42 + X43 + X44 ? 3,000Y2 C) X41 + X42 + X43 + X44 ? 3,600 D) X41 + X42 + X43 + X44 ? 1,400
Wellington, Inc, a U.S. corporation, owns 30% of a CFC that has $50 million of earnings and profits for the current year. Included in that amount is $20 million of Subpart F income. Wellington has been a CFC for the entire year and makes no distributions in the current year. Wellington must include in gross income (before any ยง 78 gross-up):
a. $0. b. $6 million. c. $20 million. d. $50 million.