E10-8 Asset Acquired by Donation A developer of a large shopping center donated a building and land to Hetting Co. without charge. The agreement provided that the company employ 350 people for 10 years. The land was appraised at $65,000 and the building at $44,000.

Required:

1. Prepare the journal entry to record the acquisition of the land and building.

2. Next Level How should the 10-year agreement be reported in the financial statements?

3. Next Level If the title were not to pass until after 10 years, would your answers to Requirements 1 and 2 change?