Lakeside Art Center, a nongovernmental not-for-profit entity, receives a contribution of $5 million.The donor stipulates that the contribution must be used to acquire paintings by local artists.Lakeside should classify the contribution as

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The donor's restriction on the use of the contribution indicates that it should be classified as temporarily restricted until the purpose of the restriction has been fulfilled (i.e., when Lakeside has acquired paintings by local artists).

Lakeside Art Center, a Nongovernmental Not-For-Profit Entity, Receives a Contribution