A donor gives Charity 1 $50,000 in cash that it must convey to Charity 2. However, the donor can reconsider and revoke the gift at any time prior to its conveyance to Charity 2. Which of the following statements is true?

Multiple Choice

As soon as the gift is made to Charity 1, Charity 2 should recognize a contribution revenue.

As soon as the gift is made to Charity 1, Charity 2 should recognize an asset.

The donor continues to report an asset even after it is given to Charity 1.

Charity 1 should report a contribution revenue.