A governmental entity is the recipient of a bequest of a multi-story office building that the government intends to use as a new city hall. The building has a historical cost of $850,000; a book value in the hands of the benefactor of $700,000; and a fair value of $1,050,000. The city should recognize on its governmental fund financial statements, donations revenue of a) $-0-. b) $700,000. c) $850,000. d) $1,050,000

Explanation to why answer is d

A governmental entity is the recipient of a bequest of a multi-story office building that the government intends to sell to support program activities. The building has a historical of $850,000; a book value in the hands of the benefactor of $700,000; and a fair value of $1,050,000. The city had not yet begun to try to sell the building when its annual financial statements were issued. The city should recognize on its governmental fund financial statements, donations revenue of a) $-0-. b) $700,000. c) $850,000. d) $1,050,000

Explanation to why answer is a