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Kale Hospital, a not-for-profit entity, received a pledge from a donor in support of a fund raising effort by the Hospital to finance construction of a new facility for cancer treatment.The donor promised to pay $2 million in equal annual installments of $200,000 over the next 10 years.The present value of the gift at the risk-free interest rate is $1,472,000.
-The amount of unrestricted revenue that should be recognized by Kale in the year of the gift is
A) $2 million.
B) $1,472,000.
C) $200,000.
D) $0.
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