In 2017, a private, nonprofit university received a donation of a work of art that was estimated to be worth $1,500,000. The university does not have...

In 2017, a private, nonprofit university received a donation of a work of art that was

estimated to be worth $1,500,000. The university does not have a collection. of art. Which of the following statements is correct?

A.   The contribution will be reported as an increased in permanently restricted

net assets on the 2017 Statement of Changes in Net Assets.

B.   The university can sell the work of art in the future as long as it replaces the work of art with a similar asset.

C.   A and B.

D.   Neither A nor B.