A Donor Contributed $1,000,000 to a Not-For-Profit Hospital with the Restriction

A donor contributed $1,000,000 to a not-for-profit hospital with the restriction that the funds be invested indefinitely and the income be used for cancer research. Which of the following would be true?

A) The gift would be recorded as an increase in permanently restricted net assets.
B) The income from the endowment would be recorded as an increase in temporarily restricted net assets.
C) Both a) and b) above.
D) Neither a) nor b) above.