D is corrent. Net assets are released from restrictions "when the stipulated time has elapsed, when the stipulated purpose for which the resource was restricted has been fulfilled, or both." In this case, of the $125,000 contributed for youth activity programs, $95,000 was expended. This the amount that would be reclassified from temporarily restricted net assets to unrestricted net assets. The $89,000 revenues generated by youth activities is irrelevant. FASB requires that when both temporarily restricted and unrestricted resources are available, the presumption is that restricted resources are used first.
A is incorrect because net assets released from restrictions are $95,000.
B is incorrect because net assets released from restrictions are $95,000.
A is incorrect because net assets released from restrictions are $95,000.
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