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 hospital received a contribution of $40,000 on June 15,20X8, which was restricted to funding research activities. The hospital spent $30,000 of the contribution on research activities during the year ended December 31,20X8. Therefore, the net assets with donor restrictions would increase by $10,000 ($40,000 - $30,000 = $10,000) as of December 31,20X8.

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