A local CPA volurteered his time to help install and test new computer accountin

Question

A local CPA volurteered his time to help install and test new computer accounting system sofhware for an after-school development organization that serves disadvantaged children. If the services had not been donated the organization would have had to hire a consultant to install the system. In accordance with the FASB Codification, the value of the CPA's time devoted to helping the organization should be recorded as: Contribution-Temporarily Restricted Program Expense. Machinery & Equipment It would not be recorded

Explanation / Answer

B.Program Expense.

The service provided by CPA is a specialised service and can only be provided by someone who has the specialised skill, so it is classified as program expense as per FASB codification.

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