USA Pass-Through Donated Equipment


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I tried searching online, as well as this forum but have not came up with a definite answer. Unfortunately working in the private sector now, I have no other accountants to bounce ideas off of. So thanks in advance for any help.

I work for a non profit organization that also has a foundation. The foundation received a donation in the form of equipment (under the cap threshold) that they will be passing onto the organization. Does anyone see a problem with the following entry?

Foundation
Donation Exp.
Donation Rev.

Non Profit Org
Equipment Exp
Donation Rev

I thought about just expensing the equipment at the foundation level (as the F/S are consolidated, and it is under the cap threshold), but being the equipment is used for the organization, I am not sure this is the correct thing to do.
 
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kirby

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What entry was posted when the foundation received the equipment?
 
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No entry has been posted yet. That's why I listed the foundation entry above. I had spaces in front of the CR amount, but it looks like it kicked that out when I made the space. Here is the entry I was thinking of doing:

Foundation
DR Donation Exp.
CR Donation Rev.

Non Profit Org
DR Equipment Exp
CR Donation Rev

I suppose if the foundation wasn't immediately handing over the equipment to the hospital it could be the following:

Foundation
DR Equipment Exp
CR Donation Rev.

Then when the equipment is given away, the entries below would take place.

Foundation
DR Donation Exp.
CR Equipment Exp

Non Profit Org
DR Equipment Exp
CR Donation Rev
 

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