You are reviewing the accounting for contributions for the year and notice an entry to record receipt of an unrestricted contribution in the amount of $120,000. This contribution was made in shares of stock with a market value of $135,000 when received, but which had fallen to a value of $120,000 when sold and the entry made. You notice that the letter accompanying the shares of stock referred to your capital campaign for renovation of your headquarters building and that the money was to be used for that purpose. Which of the following statements is correct? a. The entry is incorrect and should have recorded the receipt as a contribution with donor restrictions in the amount of $135,000 with a subsequent write-down of the investment.
b. The entry is incorrect and should have recorded the receipt as a contribution with donor restrictions in the amount of $120,000.
c. The entry is incorrect and should have recorded the receipt as an unrestricted contribution in the amount of $135,000 with a subsequent write-down of the investment.
d. The original accounting as an unrestricted contribution in the amount of the $120,000 value of the stock when sold is correct.