Securities donated to a not-for-profit organization should be recorded at the

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), securities donated to a not-for-profit organization should be recorded at their fair market value at the date of the gift. This is the price that the securities would have fetched if they had been sold in an arms-length transaction between a willing buyer and a willing seller. The donor's recorded amount or cost basis is not relevant in this case. Therefore, answer D is the best choice.

Securities Donated to a Not-For-Profit Organization Should Be Recorded at the