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Question: The Houston Corporation signs a formal pledge


The Houston Corporation signs a formal pledge to give $100,000 in cash to a private not-for-profit entity within the next year. The money must be spent to upgrade important equipment used by the charity. The pledge is judged to be a conditional contribution. Which of the following is recorded by the private not-for-profit entity for this pledge?
a. A liability.
b. No journal entry is made.
c. Contributed revenue reported within net assets with donor restrictions.
d. Contributed revenue reported within net assets without donor restrictions.

2.99

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