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Topic: Charitable gifts in Sample entity

jimkenney
Member

posted 11-18-2003 06:27 PM

In a question on charitable gifts posted 9/8/2000 the FN response referenced the Nov. transactions for the Goode sample entity. Is the $4000 for the Contribution in kind the fair market value on Nov. 30 the contribution date? If so how come the Robotech "asset" screen shows a price per share of 13.13 and a valuation date of Nov. 30. Per the Transacton by account for Unrealized gains and losses YTD it looks like Robotech price was last updated Oct. 31 even tho 400 shares are still in the acccount after the gift the price was not updated in Nov. Is this correct?

The cash flow report for Nov. shows the $4000 as income and expense - so thats zero. The $ 825.26 basis of the gift is part of the capital gain line item of 159.99 . This is a net of two items one being a debit to capital gains of 825.26 - in fact a loss or and expense type item which will remove it from The Goode's equity account. This seems to be the correct accounting for a gift to a charity. Would you clarify what happened in this case. Thanks

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fni_support
Moderator

posted 11-24-2003 07:08 PM

Hello Jim,

Yes, you are correct. The Contribution in Kind should be the fair market value of the asset on the contribution date. Based on the price per share of the Robotech asset on November 30th, the Contribution in Kind should be $2,626 (13.13 x 200) to better represent such a transaction.

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George
Financial Navigator Int’l

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