Analyzing transactions-financial statements

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A major supplier has donated $45,000 worth of medical supply items to your firm. These items are then used in the treatment of patients. Explain how this transaction would be recorded in your firm's financial statements. Additionally, your hospital has experienced negative levels of net income for the last five years. The total amount of accumulated deficits is $5 million, but you have noticed that unrestricted net assets have increased $2 million during the same period. How might this situation be explained?

Reference no: EM1366612

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