For each of the following situations, indicate whether the organization should recognize the described contributed services as revenue (offset by a corresponding expense). Briefly justify your response or identify key issues.
3. The Taconic Music Festival, a performing arts association, needed new practice facilities. The architecture firm of Lloyd Wright designed the facilities for the association without charge, and local merchants provided the building materials. All construction work was carried out by community volunteers, only a few of whom had professional experience in the building trades.
Taconic Music Festival has to recognize revenue equal to the fair market value of the ...
The solution examines contributed service recognized as revenue for Taconic Music Festival.