_____ Volunteers Constructed an Addition to an Existing Building Owned by a Nonprofit

Multiple Choice

_____ Volunteers constructed an addition to an existing building owned by a nonprofit organization. The cost of materials was $60,000 (donated by local firms) . The value of the labor hours (based on prevailing hourly rates for carpenters and electricians) was $40,000. An outside contractor offered to do the work for $115,000. At the completion of the job, the county property tax assessor assigned a value of $120,000 to the addition. Under FAS 116, how much should be reported in the financial statements for donated services?

A) $100,000
B) $115,000
C) $120,000
D) $100,000 or $120,000 at the option of the nonprofit organization.
E) $115,000 or $120,000 at the option of the nonprofit organization.