Choice "D" is correct. The value of donated services should be recorded as both a contribution and an expense if the services performed are a normal part of the program or supporting services and would otherwise be performed by salaried personnel. Clearly the two volunteers who replaced the secretary (value $10,000) would qualify under these criteria. The services performed by the other volunteers for special events would not qualify since they are not a normal part of the program and would not otherwise be performed by salaried personnel. Total salary and wage expense equals $150,000 paid staff plus $10,000 donated services$160,000. Even though clerical skills do not have the same level of skill identified for licensed services such as doctors or plumbers, they are budgeted positions for a skill that would be otherwise needed. Clerical volunteers to serve as extra help would not be recognized as revenue.Choice "a" is incorrect. Salary and wage expense will include more that purely the amount paid for salaries. It will also include $10,000 in qualfiying donated services.
Choice "b" is incorrect. Salaries and wages expense would not ignore the qualifying secretarial expenses of $10,000 and would not include the $15,000 in special events volunteers whose services do not appear to qualify as either requiring specialized skills or being mandatory.
Choice "c" is incorrect. Salaries and wages expense would not include the $15,000 in special events volunteers whose services do not appear to qualify as either requiring specialized skills or being mandatory.