A is corrent. Contributed services should be recognized only when the services (1) create or enhance nonfinancial assets, or (2) require specialized skills, are provided by individuals possessing those skills, and would typically be purchased if not provided by donation. This would include the veterinarian services ($8,000) and the services to prepare the books for audit ($4,500), or $12,500.
B is incorrect. Contributed services should be recognized only when the services (1) create or enhance nonfinancial assets, or (2) require specialized skills, are provided by individuals possessing those skills, and would typically be purchased if not provided by donation. This would include the veterinarian services ($8,000) and the services to prepare the books for audit ($4,500), or $12,500. This would include the veterinarian services ($8,000) and the services to prepare the books for audit ($4,500), or $12,500. This would include the veterinarian services ($8,000) and the services to prepare the books for audit ($4,500), or $12,500.
C is incorrect. Contributed services should be recognized only when the services (1) create or enhance nonfinancial assets, or (2) require specialized skills, are provided by individuals possessing those skills, and would typically be purchased if not provided by donation. This would include the veterinarian services ($8,000) and the services to prepare the books for audit ($4,500), or $12,500.
D is incorrect. Contributed services should be recognized only when the services (1) create or enhance nonfinancial assets, or (2) require specialized skills, are provided by individuals possessing those skills, and would typically be purchased if not provided by donation. This would include the veterinarian services ($8,000) and the services to prepare the books for audit ($4,500), or $12,500.
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