Problem

On December 30, 2010, Leigh Museum, a not-for-profit organization, received a $7,000,000...

On December 30, 2010, Leigh Museum, a not-for-profit organization, received a $7,000,000 donation of Day Co. shares with donor-stipulated requirements as follows:

The museum is to sell shares valued at $5,000,000 and use the proceeds to erect a public viewing building.

The museum is to retain shares valued at $2,000,000 and use the dividends to support current operations.

As a consequence of its receipt of the Day shares, how much should Leigh report as temporarily restricted net assets on its 2010 statement of financial position?

a. $–0–.

b. $2,000,000.

c. $5,000,000.

d. $7,000,000.

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