Question $12$

$2$ pts

Terry Johns promises to give a not$-$for$-$profit university $$2$ million for a new building, but only if the university is able to raise an equal amount in cash from other donors. When should the university recognize Terry's promise as revenue?

when it receives Terry's promise, provided it also fully discloses $($in notes to the financial statements$)$ the conditions set forth in Terry's promise regarding other contributions

when the conditions imposed by Terry are substantially met; that is$,$ when it receives approximately $$2$ million in cash from other donors

gradually; that is$,$ each time it receives cash from another donor, the entity would recognize a portion of Terry's promise as revenue

when it receives Terry's promise