youth singers ys is a not for profit organization that was formed in 20×1 by nancy a retired professional singe

Required
Prepare the draft report to the board of directors.
Exhibit C Accounting Policies and Other Information
1. Donation—Original Historic Sheet Music A donor recently died, leaving in her will a large selection of sheet music to YS. It is impossible to verify the value of this donation due to its historical value. The music will be performed by the choir during concerts. The original sheet music will be displayed in a glassed- in case.
2. Annual Pledges
Every Christmas, YS holds an annual benefit concert. At this time, YS holds a major fundraising drive and asks all concert guests to provide a donation or pledge an amount. All pledges are recognized when the pledge is made by the donor.
3. Fundraising Costs
YS are committed to having fundraising costs not exceed 5% of donation revenue. Nancy reviews all amounts expended for fundraising each year. Part of the advertising and promotion costs for fundraising are allocated to education each year because part of the purpose of these campaigns is to educate the public on the goals of YS.
4. Capital Assets
All capital assets are recorded at their market value as determined by the finance director. During 20X7, a local music store provided sheet music stands at manufacturer’s direct costs of $ 20,000. Purchasing these stands at retail prices would have cost $ 40,000.
5. Revenues
Individual choir members started providing singing lessons during 20X7 as a source of fundraising. The revenue during 20X7 from lessons was $ 50,000. Annual revenue from all sources was $ 200,000 in 20X6 and $ 280,000 during 20X7.
6. Amortization
Capital assets are not amortized.