_____ on 5/5/05, a Donor Contributed an Equity Security Having a $500,000

Multiple Choice

_____ On 5/5/05, a donor contributed an equity security having a $500,000 fair value. The donor stipulated that (a) the NPO may sell the equity security at any time and make other suitable investments, (b) the $500,000 endowment must remain intact in perpetuity, and (c) the income and gains may be spent only on diabetes research (no mention is made regarding the treatment of losses) . The equity security had a fair value of $530,000 at 12/31/05. (No dividends were received in 2005.) Which of the following categories of net assets is impacted at 12/31/05?

A) Increase TR net assets by $30,000.
B) Increase UR net assets by $30,000.
C) Increase PR net assets by $30,000.
D) Do not increase any category of net assets by $30,000.