Reference no: EM132807154

Problem 1. At the beginning of the year, the hospital received a bequest in the form of equity securities. Mosby is required to hold the securities in perpetuity, but it can spend the income. The original cost of the securities to the donor was $3.6 million, but their fair value had increased to $4.4 million on Mosby's receipt. During the year, the fair value of the securities fluctuated, with an average fair value of $4.0 million. When the hospital prepared its financial statements at year-end, the fair value of the securities was $4.1 million. At what amount should the hospital report the securities in its financial statements?

Problem 2. The American Sleep Apnea Association awarded a research grant of $160,000 to the hospital to fund a study on sleep apnea. During the year, the hospital's research team completed approximately 60 percent of the study, incurring total costs of $192,000. How much of the $160,000 grant should the hospital report as temporarily restricted?