Please do not copy from previous chegg answers.

Friendly Contribution A new childrens hospital is being built in Springfield, and Friendly Corp. has publicly 8.3 pledged that it will contribute $5 million toward the hospitals construction. In its pledge agreement dated 1/1/X1, Friendly Corp. and the hospital have agreed upon the following contribution schedule: $2 million to be contributed at 12/31/X1, $2 million at 12/31/X2, and $1 million at 12/31/X3. Friendlys typical borrowing rate is 6%. How must Friendly Corp. report the contribution in its financial statements at the end of each reporting period and as of the inception of the agreement? What disclosures are required, if any?

Note, this task has to be in memo style and references have to be codified according to the answer sheet