1. In 20X1, Community Helpers, a private voluntary health and welfare organization, received a bequest of a $100,000 certificate of deposit maturing in 20X9. The testator's only stipulation was that this certificate be held until maturity and that the interest revenue be used to finance current-year salaries for a preschool program. Interest revenue for 20X9 was $8,000. When the certificate was redeemed, the board of trustees adopted a formal resolution designating $20,000 of the proceeds for the future purchase of equipment for the preschool program.

   In regard to the certificate of deposit, which of the following should be reported in the 20X9 statement of activities?

   		Legacies and bequests, $100,000.
   		Reclassification from net assets with donor restrictions of $100,000.
   		Revenues, $100,000.
   		Transfer to land, building, and equipment fund, $20,000.

1 points