C is corrent. The requirement is to determine the amount of total revenues, gains, and other support that should be presented in the statement of operations. C is corrent because the amount should include the hospital revenue less the amount related to charity care, plus the net assets released from restrictions used for operations, and plus the other revenue, or $530,000 ($500,000 – $100,000 + $50,000 + $80,000).
A is incorrect because it is calculated deducting bad debt expense.
B is incorrect because it is calculated including the revenue related to charity care and excluding net assets released from restrictions
D is incorrect because it is calculated including the revenue related to charity care.
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