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Question - A local Conservatory is a not-for-profit entity which held a fund-raising drive. The purpose was to raise money to buy land to provide habitat for an endangered animal. During the drive, a donor pledged $1 million to the project provided that the Conservatory was able to raise an additional $1.5 million from other sources. What entry should the Conservatory make at the time of the $1 million pledge?
a) Debit Pledge receivable $1 million; Credit Unrestricted revenue $1 million.
b) Debit Pledges receivable $1 million; Credit Temporarily restricted revenue $1 million.
c) Debit Pledges receivable $1 million; Credit Temporarily restricted net assets $1 million.
d) No entry is made at the time of the pledge.
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