In Prior Years, a Not-For-Profit Hospital Received Funds from a Donor

In prior years, a not-for-profit hospital received funds from a donor who restricted the use of those funds to providing nursing scholarships. During the current year $8,000 of scholarships were awarded. These scholarships should be reported

A) As expenses in the nonrestricted fund.
B) As reductions in the revenue section in the nonrestricted fund.
C) As expenses in the donor restricted fund.
D) As expenses in the general fund.