A Donor Made a Cash Contribution of $300,000 to a Private

Multiple Choice

A donor made a cash contribution of $300,000 to a private college for the purpose of acquiring a building. The private college properly recorded the gift of cash as a temporarily restricted revenue. When the building is acquired,the college should:

A) Record the building as unrestricted.
B) Show an expense equivalent to the amount paid for the building in unrestricted net assets and reclassify the same amount from temporarily restricted to unrestricted net assets.
C) Record the building as either unrestricted or temporarily restricted, as long as a consistent policy is followed.
D) Record the building as permanently restricted.