A private not-for-profit entity receives three large cash donations:

∙ One gift of $70,000 is restricted by the donor so that it cannot be spent for four years.

∙ One gift of $90,000 is restricted to pay the salaries of the entity’s workers.

∙ One gift of $120,000 must be held forever with the income to be used to provide food for needy families. In the current year, income of $10,000 was earned but not spent.

What is the increase in the current year in net assets with donor restrictions?

a. $190,000

b. $210,000

c. $280,000

d. $290,000