Choice "A" is correct. Capital assets donated to a governmental unit should be recorded at their estimated fair value at time of acquisition, plus ancillary charges, if any.Choice "b" is incorrect. Donated capital assets are not recorded at the donor's carrying value.Choice "d" is incorrect. The donor's carrying value is of no concern to the governmental entity.Choice "c" is incorrect. Donated capital assets are recorded in the financial records when received; a memorandum entry is not made.
