Mary Egbart promised Columbus College, a private, not-for-profit college, that she would provide 80% of the funds needed to construct a new performing arts center, if the college could get the remaining 20% of the funds needed from other donors by July 1, 2006. The promise was made in 2005. At December 31, 2005, the governing board of the college had received donations from other donors for approximately 15% of the cost of the new center and believed that the probability of not getting the remaining 5% of the necessary funds was remote. For the year ended December 31, 2005, Ms. Egbart’s promise would
- Be reported as an increase in permanently restricted net assets on the statement of activities.
- Not be reported on the statement of activities.
- Be reported as an increase in deferred support on the statement of financial position.
- Be reported as an increase in temporarily restricted net assets on the statement of activities.