In which situation would the donation of a capital asset that a government intends to resell be reported?

When a government donates a capital asset with the intention of reselling it, the key factor is how the transaction is treated in the financial statements. The donation of the capital asset does not result in a gain or loss being recognized immediately, as there is no exchange of cash or other resources occurring at that moment.

If the asset is meant to be resold, it will be recorded in the financial statements as an asset until the point of sale occurs. Therefore, the reporting focuses on whether the asset is sold or retained for future use. Once the asset is resold, any gains or losses will be recognized in the financial statements at that time.

In the scenarios presented, option D is appropriate because if the asset is donated but not sold as of the financial statement issuance, it does not meet the criteria for recognition of a gain or loss. Therefore, neither the situation of being sold after the fiscal year nor remaining unsold at the statement issuance leads to a reporting requirement for the donation itself.