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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 restricted revenue that should be recognized by Kale in the year of the gift is

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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 restricted revenue that should be recognized by Kale in the year of the gift is

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The restricted revenue recognized should be the present value of the pledge, which is $1,472,000, as it reflects the current value of the future cash flows.

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