1. A nonprofit healthcare entity received a donation of medical imaging equipment in 2021 from a medical equipment manufacturer. The donor placed no restrictions on the use of the equipment. How should the nonprofit entity report this donation in 2021?

1. As contribution revenue without donor restrictions.
2. As contribution revenue with donor restrictions.
3. As a reclassification from net assets with donor restrictions to net assets without donor restrictions.
4. B or C as long as the nonprofit discloses its policy and is consistent in applying the policy.

2. Which of the following statements is correct?

1. Assets that are designated by the governing board of a nonprofit entity for a specific purpose are included in the amount reported for net assets without donor restrictions.
2. A portion of the cost of a fundraising dinner, where those invited to the dinner is limited to past donors, can be allocated to program expenses.
3. A and B.
4. Neither A nor B.

3. Which of the following is a characteristic of a contribution?

1. Reciprocal.
2. Exchange.
3. Unconditional.
4. Restricted.
5. C and D.