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Question - Do-Good Society is a not-for-profit organization formed on January 1, 20X2. On its first day of operations, a donor made a restricted fund contribution of $8,400 and Do-Good Society used part of this money to purchase equipment costing $8,000. The equipment is estimated to have a useful life of four years and be worthless at the end of that time. There were no other activities in the donations or purchases of this type for the balance of the year. What would be the balance in the capital fund on December 31, 20X2?
1. $6,000
2. $6,400
3. $8,000
4. $8,400
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