Child Care Centers, Inc., a not-for-profit organization, receives revenue from various sources during the year to support its day care centers. The following cash amounts were received during 2005:

$2,000 restricted by the donor to be used for meals for the children.

$1,500 received for subscriptions to a monthly child-care magazine with a fair market value to subscribers of $1,000.

$10,000 to be used only upon completion of a new playroom that was only 50% complete at December 31, 2005.

What amount should Child Care Centers record as contribution revenue in its 2005 Statement of Activities?

  1. $ 2,000
  2. $ 2,500
  3. $10,000
  4. $11,000