Parkhurst Corporation acquires land and buildings valued at $250,000 as a gift from a local philanthropist. The president of the company maintains that because there was no cost for the acquisition, neither the cost of the facilities nor depreciation needs to be recognized for financial statement purposes. Evaluate the president’s position assuming
(a) The donation is unconditional and
(b) The donation is contingent upon the employment by the company of a certain number of employees for a 10-year period.