Choose the Correct Statement About a Restriction Placed on the Donation

Choose the correct statement about a restriction placed on the donation of equipment to a firm.

A) The firm records the donation as it would any other donation
B) The firm must wait until the restriction is eliminated before recording the donation
C) The firm records an asset and a liability until the restriction is met; the liability is removed from the books upon meeting the restriction
D) The firm records an asset and a liability until the restriction is eliminated; the liability is removed from the books when the restriction is eliminated

Correct Answer:

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