D is corrent. Restricted revenues are recorded only when a restriction has been placed by the donor. One type of restricted revenue is a pledge that has not been received during the year. This considered a time restriction; accordingly, the $500,000 would be considered a temporarily restricted revenue based on a time restriction. The $850,000 and the $100,000 would be considered unrestricted revenues. The $100,000 is considered contributed services and carries no restriction. Contributed services are recognized when the services received (1) create or enhance nonfinancial assets or (2) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. The $100,000 contribution meets the second criterion.
A is incorrect because unrestricted revenue is $975,000 and temporarily restricted revenue is $500,000.
B is incorrect because unrestricted revenue is $975,000 and temporarily restricted revenue is $500,000.
C is incorrect because unrestricted revenue is $975,000 and temporarily restricted revenue is $500,000.
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