Mr$.$ Armstrong agrees to donate $$100,000$ to New Hopeful College once land has been acquired for a new football field. Mr$.$ Armstrong gives $$12,000$ of this money immediately to show that he is sincere$.$ The land has just been bought but no construction has begun. How is this donation reported by the school assuming it qualifies as a private not$-$for$-$profit organization?

Multiple choice question.

$$12,000$ is reported as contribution revenue and the rest is not reported at all until received.

All $$100,000$ is reported as contribution revenue.

$$12,000$ is reported as a liability while $$88,000$ is reported as a contribution revenue.

All $$100,000$ is reported as a liability until the construction begins.