Bill Gates contributed $100,000 of cash and pledged another $50,000 to Goodwill, a non-for-profit organization to cover the $50,000 salary of its executive director for the current year and the next two years. How should the contributions be reported, if Goodwill uses the deferral method of accounting for contributions?

a.

$150,000 should be reported as contribution revenue in the current year.

b.

$100,000 should be reported as contribution revenue in the current year and $50,000 should be reported as deferred contribution revenue at the end of the current year, assuming that the pledge receivable is likely to be collected.

c.

$50,000 should be reported as contribution revenue in the current year and $100,000 should be reported as deferred contribution revenue at the end of the current year, assuming that the pledge receivable is likely to be collected.

d.

$100,000 should be reported as contribution revenue in the current year and $50,000 should be reported as contribution revenue when the individual remits the other $50,000.