The City of Wilson receives a large sculpture valued at $240,000 as a gift to be placed in front of the municipal building. Which of the following is true for reporting the gift within the government-wide financial statements? 1. A capital asset of $240,000 must be reported. 2. No capital asset will be reported. 3. If conditions are met, recording the sculpture as a capital asset is optional. 4. The sculpture will be recorded but only for the amount paid by the city