Which entry would be the correct entry on the donor's books when the donor retains control of an asset that it contributes to a not-for-profit organization?

Question

Quizplus · Accepted Answer

Option B represents the correct entry when the donor retains control of an asset that it contributes to a not-for-profit organization. It shows that the asset has been transferred to the organization, but the donor still has control over it. The entry reflects the accounting principle of recognizing assets and liabilities at their fair value. Option A, C, D, and E do not represent the correct entry in this case.

Which Entry Would Be the Correct Entry on the Donor's