A private,not-for-profit hospital received a cash contribution of $100,000 from Samantha Hicks on November 14,20X8.Ms.Hicks specified the money be used to acquire equipment.On December 31,20X8,the hospital had not expended any of Ms.Hicks' contribution.On the statement of changes in net assets for the year ended December 31,20X8,the hospital should report the contribution as a $100,000 increase in

Question

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Since Ms. Hicks specified that the contribution should be used for acquiring equipment, the contribution is considered to be temporarily restricted until the equipment is acquired. Therefore, the hospital should report the contribution as a $100,000 increase in temporarily restricted net assets on the statement of changes in net assets for the year ended December 31, 20X8.

A Private,not-For-Profit Hospital Received a Cash Contribution of $100,000 from Samantha