Note: This is a Kaplan CPA Review Question
Fike Hospital, a private, not-for-profit institution, receives an unrestricted gift of common stock with a fair value of $100,000. The donor had paid $40,000 for the stock five years earlier. The gift should be recorded as an
A) Increase in unrestricted net assets of $40,000.
B) Increase in temporarily restricted net assets of $100,000.
C) Increase in temporarily restricted net assets of $40,000.
D) Increase in unrestricted net assets of $100,000.

Question

Quizplus · Accepted Answer

The gift should be recorded at its fair value at the time of donation, which is $100,000, as an increase in unrestricted net assets because it is an unrestricted gift.

Note: This Is a Kaplan CPA Review Question