A donated collection is not required to be capitalized. If a government decides notto capitalize them, how will they be accounted for at the time of the donation?

Question

Quizplus · Accepted Answer

If the collection were capitalized, the journal entry would be a debit to collections and a credit to revenue. If the collection were not capitalized, the journal entry would be a debit to an expense account and a credit to revenue.

A Donated Collection Is Not Required to Be Capitalized