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Colleges and universities frequently get graduating seniors to donate money to them. A very common practice is to divide this money up over a number of years. Thus a $30 donation might be divided up over a five year period (based on a Wall Street Journal article of March 2, 2007; the $30 contribution and the $6 division over five years was actually cited in the article).
Required :
a. Is this an allocation? Discuss.
b. Why do you think that colleges and universities follow this practice?
c. What entry did the college make for the five year division?
d. Do you have any other comments you would like to make about this practice?
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