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Case Study No. 2
•A corporation pledges $1,000,000 over 5 years to a state higher education institution.  The donor card details that the coporation will pay $250,000 each year for 4 years.  Funds received must be expended in the year of receipt.
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This is a derived tax revenue.

The city should recognize assets and revenues for each night a guest stays in a hotel room in the City.

The requirement to use tax proceeds for the convention center is a purpose restriction, which requires net assets be reported as restricted until they are expended for construction.