[splinter1643]

I’m assuming most people on the forums have the 2012 Becker book, but I can add in another post with more details if needed. I’m struggling through the simulation on page F9-88:

The way I interpreted #1 was that a promise to pay doesn’t really mean anything (yet), so it would have no effect on the asset, liability, or net assets.

I’m stuck on #3. Why is only $200,000 getting recognized and not the full $500,000? Is it because that’s what the benefactor actually gave out in #2? Also, is the $300,000 now a pledge receivable because the condition has been met but the benefactor hasn’t paid this out to the day care center yet?

CPA license in progress....