C is corrent because, per ASC Topic 958, income is earned as a result of a donation.
A is incorrect because retained earnings is not credited in this entry, although it is indirectly affected.
B is incorrect because a donated fixed asset does not involve the issuance of an enterprise’s capital stock.
D is incorrect because deferred or unearned income implies that donated capital represents a liability that will be recognized in the future on the income statement. However, there is no liability involved, and no deferred income should result.
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