A private sector,not-for-profit hospital received a pledge of $150,000 in 2014 to be used for a building to be constructed in 2015 but contingent on the hospital being able to raise an equivalent amount from other donors.As of the end of 2014,half the amount had been raised from other donors. In 2015,the hospital raised the amount from other donors. The donor gave the $150,000 to the hospital in 2015 and the building was completed in 2016. In which year should the hospital recognize the $150,000 from the pledge?

Question

Quizplus · Accepted Answer

The pledge should be recognized in 2015 when the condition of raising an equivalent amount from other donors was met.

A Private Sector,not-For-Profit Hospital Received a Pledge of $150,000 in 2014