Reference no: EM13349442
Question :
For each of the subsequent situations, shows whether the organization could recognize the described contributed services as revenue (offset by a corresponding expense). Briefly explain your response or identify key issues.
1. Nellie Wilson, the noted country-and-western singer, performs a benefit concert for the Save Our Farms Association, a political advocacy group. Wilson, who would usually charge $60,000 per concert, did not accept a fee.
2. Camp Chi-Wan-Da, a summer camp for disadvantaged youth, benefits from the services of four physicians, each of whom spends two weeks at the camp giving medical services to the campers. The doctors receive free room and board but no salary. Camp association standards need that camp of Chi-Wan- Da's size either have a physician on premises or have a physician on call.
3. The Taconic Music Festival, a performing arts association, required new practice facilities. The architecture firm of Lloyd Wright designed the facilities for the association without charge, and local merchant's pro- vided the building materials. All construction work was carried out by community volunteers, only a few of whom had professional experience in the building trades.
4. A neurologist serves on the board of trustees of the Neurological Disease Foundation, an organization that funds clinical research. He was asked to serve due to his expertise in neurological research, and he chairs the committee of the board that selects grant recipients.
5. Daughters of Charity Hospital draw its nursing staff from members of its religious order. The nurses are not paid a salary. Instead, they receive free room and board and a living allowance. The net cost to the hospital is approximately 60 % of what it would have to pay in salary and benefits on the open market. In addition, the hospital benefits from the services of ''candy stripers'' and other volunteers who staff the hospital's gift shop, carry meals to patients, and perform a variety of other important functions. Were it not for these volunteers, the hospital would be needed to hire additional personnel to carry out many of their duties.