The Boston Womens History Museum, a nonprofit focused on safeguarding historical items that are important to the history of women in the Boston area, received a contribution of a set of diaries written by Isabella Stuart Gardner, a leading American art collector and philanthropist who lived in Boston from 1840 to 1924. The woman contributing the diaries did so on the condition that they be used as part of the Museums exhibitions and that they never be sold. She bought the diaries at auction a few weeks earlier and paid $250,000 for the set.

Required:

1. Discuss the Museums options for reporting this contribution?

2. What do you recommend and why?

3. Describe the circumstances under which contributed services must be recognized as revenues and expenses in the financial statements. Give an example of contributed services that would be recorded and an example of those that would not be recorded.