Forever Young $($FY$)$ is a not$-$for$-$profit organization. During Year $2,$ it received $$200,000$ cash from a donor. However, the donor restricted the fund usage for the new program that the FY has recently setup $-$ providing art classes to community. At the end of fiscal year $2($i$.$e$.$ Dec $31,$ Year $2),$ FY spent $$12,000$ on the program.

Assuming the deferral method is used, which of the entry will be recorded by FY on Dec $31,$ Year $2?$

Question $3$Select one:

a$.$

Cr$.$ Contribution Revenue of $$200,000$

b$.$

Cr$.$ Contribution Revenue of $$12,000$

c$.$

Cr$.$ Deferred Contribution of $$12,000$

d$.$

Cr$.$ Deferred Contribution of $$200,000$