Reference no: EM132784488

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

                                                             Donation 1                 Donation 2

Number of shares                                        2,000                        3,000

Adjusted basis                                           $8,000                      $5,500

Fair market value at time of donation              8,500                          6,000

Fair market value at year end                         10,000                          2,000

Problem 1: What net value of investments will the organization report at the end of the year?

Option 1: $14,500
Option 2: $14,000
Option 3: $13,500
Option 4: $12,000