A donor made an unconditional pledge in 2016 of $ 50,000 to a private not-for-profit organization with the intent to pay the cash in 2017 for unrestricted use in 2017. The organization should:
A. record the pledge as unrestricted revenue in 2016.
B. record the pledge as temporarily restricted revenue in 2016 and reclassify it to unrestricted in 2017.
C. record the pledge receivable and deferred revenue in 2016.
D. record the pledge as temporarily restricted revenue in 2016 and reclassify it to unrestricted in 2017, but only in an amount equivalent to the amount that is spent in 2017.
Answer: B
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