Choice "D" is correct. The donation will not be included in unrestricted net assets. $8,000,000 of the stock donation will be included in temporarily restricted net assets because the donor has specified how the not-for-profit must used the proceeds from the sale of the stock and $2,000,000 of the stock donation will be included in permanently restricted net assets because the donor specified that the stock could not be sold.
Choice "c" is incorrect. The $2,000,000 in stock that cannot be sold must be included in permanently restricted net assets.
Choice "a" is incorrect. The $8,000,000 that must be sold with the proceeds to be used for renovation will be included in temporarily restricted net assets.
Choice "b" is incorrect. The donation will not be included in unrestricted net assets. $8,000,000 of the stock donation will be included in temporarily restricted net assets because the donor has specified how the not-for-profit must used the proceeds from the sale of the stock and $2,000,000 of the stock donation will be included in permanently restricted net assets because the donor specified that the stock could not be sold.
