A private, not-for-profit hospital received a contribution of $40,000 on June 15, 20X8. The donor restricted the contribution to funding research activities currently being performed by the hospital. For the year ended December 31, 20X8, the hospital spent $30,000 of the contribution on research activities. The hospital expended the remaining $10,000 on research activities in January of 20X9.
-Refer to the above information.On the statement of changes in net assets prepared for the year ended December 31,20X8,the events described would

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The contribution is considered temporarily restricted until the related research activities are performed. Since the hospital spent $30,000 on research activities during the year, $30,000 of the contribution would be released from temporary restrictions and recognized as an increase in unrestricted net assets on the statement of changes in net assets for the year ended December 31, 20X8. However, there is still $10,000 remaining in temporarily restricted net assets at the end of the year because the hospital did not fully perform the research activities as required by the donor. Therefore, the $10,000 that was not spent until January of 20X9 would remain temporarily restricted on the statement of changes in net assets for the year ended December 31, 20X8.

A Private, Not-For-Profit Hospital Received a Contribution of $40,000 on June