Concord County owned an idle parcel of real estate consisting of land and a factory building. Concord gave title to this realty to Pharoah Company as an incentive for Pharoah to establish manufacturing operations in the County. Pharoah paid nothing for this realty, which had a fair value of $230000 at the date of the grant. Pharoah should record this nonmonetary transaction as a:

a. Credit to Contribution Revenue for $280000
b. Memo entry only
c. Credit to Donated Capital for $280000.
d. Credit to Comprehensive Income for $280000.

Credit to Donated capital for $230000 ( C )

Explanation:

pharaoh receiving a parcel of real estate from Concord County  with a fair value of $230000 and not paying for it i.e as a grant. Pharaoh will record such non monetary transaction as credit to donated capital. this is because the cost/capital he would have spent in acquiring that property for his business have been saved and the asset was Donated to him by Concord County which means he still got the property which is very essential for his business.this is why he should record this transaction under Donated capital.

Both Long and Grant were unaware of frost's incompetence. Frost or Frost's legal representative will not be liable because Long did not have authority to enter into the contract.