Question: A contractor contributes services valued at $40,000 to build a new building for a private NFP organization. The net effect of this contribution in the

A contractor contributes services valued at $40,000 to build a new building for a private NFP organization. The net effect of this contribution in the organization's statement of activities is: Select one:

A. Not reported in the statement of activities.

B. Increase in expenses and increase in contributions of $40,000; no net effect on net assets.

C. $40,000 increase in net assets without donor restrictions.

D. $40,000 increase in net assets with donor restrictions.

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