In July 20X2, Ross donated $200,000 cash to a church with the stipulation that the revenue generated from this gift be paid to him during his lifetime. The conditions of this donation are that after Ross dies, the church may use the principal for any purpose voted on by its elders. The church received interest of $16,000 on the $200,000 for the year ended June 30, 20X3, and remitted the interest to Ross. In the church’s June 30, 20X3, annual financial statements should report

a. $200,000 as net assets with donor restrictions in the balance sheet.

b. $184,000 as revenue in the activity statement.

c. $216,000 as revenue in the activity statement.

d. Both a and c.