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Feliz [49]
3 years ago
7

A nongovernmental not-for-profit organization received the following donations of corporate stock during the year:Donation 1 Don

ation 2Number of shares 2,000 3,000Adjusted basis $8,000 $5,500Fair value at time of donation 8,500 6,000Fair value at year end 10,000 4,000What net value of investments will the organization report at the end of the year?A. $12,000B. $13,500C. $14,000D. $14,500
Business
1 answer:
Anna71 [15]3 years ago
4 0

Answer:

C. $14,000

Explanation:

Donated securities are initially recorded at the fair value on the date the gift is received. The securities will be reported at their market value at the end of the year i.e. the balance sheet date. Fair value at the year end will thus be the sum of the fair value of the two donations at the end of the year i.e $10,000 + $4,000 = $14,000.

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