Which of the following transactions would result in an increase in unrestricted net assets for the year ended December 31, 2005?

  1. I. A private, not-for-profit hospital earned interest on investments that were board-designated.
  2. II. A private, not-for-profit voluntary health and welfare organization received unconditional promises to give (pledges) which will not be received until the beginning of 2006. The donors placed no restrictions on their donations.
    1. a. Both I and II.
    2. b. I only.
    3. c. II only.
    4. d. Neither I nor II.