Shults Labs donates an item of prescription medications worth $100,000 to a local nonprofit hospital. How should the hospital report the donation in its financial statements?

Select one:

A. Report an asset and an other revenue (or gain) at the manufacturer's direct cost to produce the equipment, which is estimated at $70,000

B. Report contribution revenue (or gain) and an expense of $100,000

C. Report contribution revenue (or gain) and an asset (inventory) of $100,000

D. Report nothing on the face of the financial statements, but describe the donation in the notes to the statements.