Question

On December 30, 2015, Leigh Museum, a not-for-profit entity received a $6,200,000 donation of Day Co. common stock shares with donor-stipulated requirements as follows:

	The museum is to sell shares valued at $4,600,000 and use the proceeds to erect a public viewing building.
	The museum is to retain shares valued at $1,600,000 and use the dividends to support current operations.

As a consequence of its receipt of the Day Co. shares, how much should Leigh report as temporarily restricted net assets on its 2015 statement of financial position?

$6,200,000.

$4,600,000.

$0.

$1,600,000.

Answer 1