Q: An organization recently got a donation of a Motor Vehicle purchased for $40,000. How does the receiving organization account for it?
A: I would do the journal entry for this as follows:
Debit Motor vehicle (asset) $40,000 Credit Donation received (income) $40,000
The debit is the easy part here: the business is receiving an asset, assets occur and increase on the left side so we credit it.
The credit described what occurred - we received a donation. This "donation received" account is actually an income account. Income occurs naturally on the right side as it means more for the owner (owner's equity) and therefore it's credited.