A Governmental Entity Is the Recipient of a Bequest of a Multi-Story

Multiple Choice

A governmental entity is the recipient of a bequest of a multi-story office building that the government intends to use as a new city hall.The building has a historical cost of $850,000; a book value in the hands of the benefactor of $700,000; and a fair value of $1,050,000.The city should recognize on its governmental fund financial statements, donations revenue of

A) $-0-.
B) $700,000.
C) $850,000.
D) $1,050,000.