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?
- $ 2,000
- $ 2,500