A contractor contributes services valued at $40,000 to build a new building for a private NFP organization. The net effect of this contribution in the organization's statement of activities is:

A. Increase in expenses and increase in contributions of $40,000; no net effect on net assets. B. $40,000 increase in net assets with donor restrictions. C. Not reported in the statement of activities. D. $40,000 increase in net assets without donor restrictions.