Directions: Select the best answer for the following multiple choice question.

1. Friends of the Forest received a donation of marketable equity securities from a member. The securities had appreciated in value after they were purchased by the donor, and they continued to appreciate through the end of Friends of the Forest's fiscal year. At what amount should Friends of the Forest report its investments in marketable equity securities in its year-end balance sheet?

a. Donor's cost

b. Fair value at the date of receipt

c. Fair value at the balance sheet date

d. Fair value at either the date of receipt or the balance sheet date

Please explain the reason why you chose the answer for the above question. Thank you.