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When a not-for-profit organization uses the deferral method of revenue recognition and receives a donation restricted to the purchase of land, when should the donation

When a not-for-profit organization uses the deferral method of revenue recognition and receives a donation restricted to the purchase of land, when should the donation be recognized as revenue?

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  • When the cash is received.

  • When the land is purchased.

  • When the land is put into service by the organization.

  • It should not be recognized as revenue at all.

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