Shorecrest Company Recently Accepted a Donation of Land with a Fair

Multiple Choice

Shorecrest Company recently accepted a donation of land with a fair value of $250,000 from the city of Sutton in return for a promise to build a plant in Sutton. The entry that Shorecrest should use to record this land is:

A) Land..............................250,000
Donated Capital-Land 250,000
B) Land..............................250,000
Gain from Receipt of Donated Land 250,000
C) Land..............................250,000
Unrealized Gain from Receipt of
Donated Land..................250,000
D) Land..............................250,000
Retained Earnings................250,000