DeKalb Hospital, a large not-for-profit organization, has adopted an accounting policy that does not imply a time restriction on gifts of long-lived assets.

For each of the six items presented, select the best answer from the following list:

A Increase in unrestricted revenues, gains, and other support.

B Decrease in an expense.

C Increase in temporarily restricted net assets.

D Increase in permanently restricted net assets.

E No required reportable event.

1. DeKalb’s board designates \(\$ 1,000,000\) to purchase investments whose income will be used for capital improvements.

2. Income from investments in item 1, which was not previously accrued, is received.

3. A benefactor provided funds for building expansion.

4. The funds in item 3 are used to purchase a building in the fiscal period following the period in which the funds were received.

5. An accounting firm prepared DeKalb's annual financial statements without charge to DeKalb.

6. DeKalb received investments subject to the donor's requirement that investment income be used to pay for outpatient services.