Which of the following statements pertaining to an NFPO that receives a donation of inventory is correct?
a Inventory donated to an NFPO does not need to be recognized as it was received for no payment by the NFPO.
b The inventory should initially be recorded at fair market value, which then becomes its deemed cost from that point forward.
c An NFPO that receives a donation of inventory that it plans to distribute for free, will measure the inventory at lower of cost and net realizable value.
d The inventory should initially be recorded at the cost to the donor, which then becomes the NFPOs cost from that point forward.