Aukey Smith contributed $$1,000,000$ to the local homeless shelter on November $1,2025,$ stipulating that the contribution be used to purchase a building to provide additional beds for the homeless. The building was purchased at a cost of $$1,200,000$ on March $31,2026,$ with $$200,000$ coming from surpluses in the general fund. The building has an estimated useful life of $15$ years, with no residual value. The shelter capitalizes its capital assets and uses the straight$-$line method to amortize its capital assets, pro$-$rating for the number of months owned in the years of acquisition and disposal. The shelter has a December $31$ year$-$end and uses the deferral method. What journal entry correctly accounts for the building and contribution revenue in the financial statements for the year ending December $31,2026?$

Answer Options:

$1.$ Dr$.$ Deferred contribution liability $50,000$

$$ Cr$.$ Contribution revenue $50,000$

$$ Dr$.$ Amortization expense $60,000$

$$ Cr$.$ Capital asset$$accumulated amortization $60,000$

$2.$ Dr$.$ Deferred contribution liability $60,000($Selected Option$)$

$$ Cr$.$ Contribution revenue $60,000$

$$ Dr$.$ Amortization expense $60,000$

$$ Cr$.$ Capital asset$$accumulated amortization $60,000$

$3.$ Dr$.$ Deferred contribution liability $50,000$

$$ Dr$.$ Amortization expense $60,000$

$$ Cr$.$ Contribution revenue $110,000$

$4.$ Dr$.$ Deferred revenue $50,000$

$$ Dr$.$ Amortization expense $50,000$

$$ Cr$.$ Capital asset $100,000$