6. Topic: Pledged contributions LO 2 In 2012, a donor makes a documented promise to contribute $1,000,000 to a not-for- profit organization in 2013. The donor says the contribution may be used for any purpose, and follows through on her promise in 2013. How is this donation reported in the 2012 and 2013 financial statements of the not-for-profit organization? Ignore interest. a. 2012: Increase in temporarily restricted net assets for $1,000,000; 2013: Decrease in unrestricted net assets for $1,000,000 b. 2012: Increase in unrestricted net assets for $1,000,000; 2013: Increase in expenses for $1,000,000 C. 2012: Increase in temporarily restricted net assets for $1,000,000; 2013: Decrease in temporarily restricted net assets for $1,000,000 d. 2012: Increase in unrestricted net assets for $1,000,000; 2013: No change in net assets ANS: C