Anongovernmental, not-for-profit organization received a $2 million gift from a donor who specified it to be used to create an endowment fund that would be invested in perpetuity. the income from the fund is to be used to support a specific program in the second year and beyond. an investment purchased with the gift earned $40,000 during the first year. at the end of the first year, the fair value of the investment was $2,010,000. what is the net effect on net assets with donor restrictions at year end?

What are two benefits of consumer programs

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?

In the fall of 2008, aig, the largest insurance company in the world at the time, was at risk of defaulting due to the severity of the global financial crisis. as a result, the u.s. government stepped in to support aig with large capital injections and an ownership stake. how would this affect, if at all, the yield and risk premium on aig corporate debt?