Plant acquired by a private college with either unrestricted or restricted sources must be recorded initially as temporarily restricted and then reclassified in accordance with the depreciation schedule.

Question

Quizplus · Accepted Answer

Plant assets acquired by a private college should be recorded as either unrestricted or temporarily restricted based on the source of funds, but they are not reclassified according to the depreciation schedule. Depreciation is recorded as an expense, not a reclassification of restrictions.

Plant Acquired by a Private College with Either Unrestricted or Restricted