For the 20X7 fall semester, Brook Public University assessed its students $4,000,000 (net of refunds), covering tuition and fees for educational and general purposes. However, only $3,700,000 was expected to be realized because tuition remissions of $80,000 were allowed to faculty members’ children attending Brook, and scholarships totaling $220,000 were granted to students.
Private College is sponsored by a religious group. Volunteers from this religious group regularly contribute their skilled services to Private and are paid nominal amounts to cover their commuting costs. If Private did not receive these volunteer services, it would have to purchase similar services. During 20X6, the total amount paid to these volunteers was $12,000. The gross value of services performed by them, as determined by reference to lay-equivalent salaries, amounted to $300,000. What amount should Private record as expenses in 20X6 for these volunteers’ services?
a. $312,000
b. $300,000
c. $12,000
d. $0
Public and private schools, multiple choice. Select the best answer for each of the following multiple-choice items dealing with universities: