How much should the hospital report as compensation expense

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Problem 1: Radnor Nursing School provided volunteer nurses two days a week whose services were comparable to those provided by paid nurses. The hospital would have incurred $92,800 in additional compensation and benefit costs, if it had to pay for these services. Can the hospital report these services as contribution? Explain.

Problem 2:  Members of the local high school's "HealthOccupation Students of America" club staffed the gift shop and children's waiting rooms. If the hospital had to hire and pay employees to provide these services (all of which were needed for hospital operations), the estimated cost would have been approximately $168,000. How much should the hospital report as compensation expense? Explain.

Reference no: EM132807157

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