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Accounting for Sale of Asset/Donation: Non-Profit

I am doing some accounting work for a non-profit foundation associated with a college. They have an accounting situation that I have never run across before.
The Foundation built a multi-million dollar campus for the benefit of the College a couple years back. They entered into a capital lease agreement that transfers the campus buildings to the College after the end of the lease for 1/3 the cost. They calculated the capital lease correctly, but instead of recording a large loss on sale of assets they recorded it as a donation to the College. Is this allowable, or should it be a loss on sale?

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