In 2016 St

In 2016 St.Martin's Hospital received a $50,000 cash gift to be used to buy supplies and other items for the pediatric department of the hospital.In 2017, St.Martin's purchased puppets and other items to be used in explaining medical procedures to young children.The acquisition of the items causes a NET decrease in which class(es) of net assets?

A) Unrestricted net assets only.
B) Temporarily restricted net assets.
C) Both unrestricted and temporarily net assets.
D) Neither unrestricted nor temporarily restricted net assets.
Use the following information to answer Questions 4 and 5.
Pelican 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.