Choice "A" is correct. When a temporary restriction is satisfied, a reclassification is shown on the statement of activities by decreasing temporarily restricted net assets and increasing unrestricted net assets. Since the donor restricted contribution funds a capital asset, the increase in unrestricted net assets is not reduced by an expense.
Choice "d" is incorrect. When a temporary restriction is satisfied, temporarily restricted net assets are decreased, not increased.
Choices "c" and "b" are incorrect. The satisfaction of a temporary restriction has no impact on permanently restricted net assets.
