In an article by Michaela Boland that appeared in The Australian on 19 March 2015 entitled 'Careful
Question:
In an article by Michaela Boland that appeared in The Australian on 19 March 2015 entitled 'Careful collector leaves nation an $8m legacy' it was stated that: "He was a career public servant, a volunteer at the National Gallery of Australia in Canberra and by the time Alan Boxer died last June aged 86, he'd amassed an art collection of 900 works valued at more than $10 million. Yesterday the first two tranches of that collection went to new homes. A group of 19 artworks valued at $8m was gifted to the NGA, one of the most significant acts of generosity in the gallery's history. The most important artwork in the gift is Rabbit tea party, the first painting from Charles Blackman's famous Alice series to join the national collection... Boxer was a bachelor who had once been engaged but never married. He had no children and slept in a single bed. He read widely, listened to classical music and filled his house with artworks. 'He was obsessive about the work and deeply in love with his collection,' Mr Pithie [co‐executor of Boxer's will] said. 'It's an extremely generous gift from a humble man to a great institution.
Required:
Determine whether the gallery should treat the donation as income.
Expert Answer:
The national gallery should classify the donation as income from the donation and record the same in ... View the full answer
