Goodwill is a not-for-profit organization with average annual revenues of $600,000 received a donation of computer equipment in fiscal 2020.The fair value of the computer equipment was determined to be $12,000. How should Goodwill accounts for the donated equipment?
a.It must capitalize and subsequently amortize the computer equipment.
b.Goodwill has the choice of capitalizing and amortizing, or capitalizing without amortizing, or expensing, the computer equipment.
c.it must capitalize the computer equipment without subsequent amortization.
d.It must write off the computer equipment as an expense.